Low Market Prices Research Articles

The use of alternative prey (crayfish, Procambarus clarki, and hake, Merlucius gayi) to culture Octopus vulgaris (Cuvier 1797)

The effects of two alternative prey (crayfish and hake) were tested on growth and survival of both juveniles and adults of Octopus vulgaris in two experiments. Octopuses fed the control (squid) were larger (3.0 ± 0.7 kg) than those fed crayfish (2.4 ± 0.6 kg) at the end of experiment I. Similarly, overall growth rates were higher for octopuses fed squid (1.7 ± 0.3 and 1.2 ± 0.2 %BW day−1, respectively). Average feeding rates for the experiment were not different, being 6.5 ± 0.9 and 7.5 ± 0.9 %BW day−1, respectively, for octopuses fed either squid or crayfish. Nevertheless, food conversions for the experiment were higher (42.4 ± 2.7%) for octopuses fed squid compared to the ones fed crayfish (23.9 ± 1.9 g). For experiment II, hake and crayfish were compared to squid; the final weight of octopuses fed squid, hake or crayfish was 1,183.0 ± 242.7 g, 1,175.6 ± 240.1 g and 922.3 ± 160.1 g, respectively. Overall growth rates for the experiment were 1.9 ± 0.2 %BW day−1, 1.9 ± 0.3 %BW day−1 and 1.1 ± 0.3 g, respectively. Final weight and growth rates were never different (P > 0.05) between octopuses fed squid and hake, but were always higher (P < 0.05) compared to the ones fed crayfish. Average feeding rates for experiment II were similar for the three diets, and of 4.6 ± 1.5, 4.2 ± 1.3 %BW day−1 and 5.1 ± 0.9 %BW day−1, respectively, for octopuses fed squid, hake or crayfish. Food conversions for experiment II were of 41.0 ± 9.6%, 40.5 ± 9.9% and 21.3 ± 7.4 g, respectively, for octopuses fed squid, hake or crayfish, and were always higher for octopuses fed squid and hake compared to crayfish. The results indicate that crayfish is not an adequate replacement for the usual prey to fatten octopus, even considering its much lower market price.

Stock Return Behaviour around Stock Splits: Indian Evidences

Present study examines the stock return behaviour vis-à-vis stock splits in Indian context during the period from December 1999 to December 2007. It also makes an effort to disentangle the liquidity, trading range and neglected firm hypothesis. Consistent to earlier evidence, the study also documents the stock split announcement and execution effect in Indian context. The results regarding trading volume and daily turnover led to negation of improvement in liquidity after stock splits in India. The study could not corroborate the trading range hypothesis as possible explanation of stocks splits in India as majority of shares which split were trading at low market prices. While the neglected firm hypothesis could firmly be associated with the stock splits in India.

Technology adoption under seed access constraints and the economic impacts of improved pigeonpea varieties in Tanzania

AbstractDry‐land legumes, well adapted to drought‐prone areas, have largely been neglected in the past despite the good opportunities they offer for income growth and food (and nutritional) security for the poor. This study evaluated the adoption and impact of two farmer and market‐preferred and disease‐resistant pigeonpea varieties that were developed and promoted in semi‐arid Tanzania. The new varieties were resistant to fusarium wilt, a fungal disease devastating the crop. However, farmers wanting to adopt new varieties did not adopt due to seed access constraints and under‐developed seed delivery systems. Adoption of new varieties is therefore analyzed using an augmented double hurdle model that allows estimating variety adoption conditional on seed access thresholds accounting for the additional information on sample separation. The study identifies the crucial role of seed access (local supply), extension, education, participatory decision making, capital, and household assets in determining adoption. The social economic benefits of the technology and policies for improved seed access were further analyzed using the extended economic surplus method (DREAM model). Even under restrictive assumptions, overall discounted benefits were found to be quite attractive, indicating the need for additional efforts to scale‐up the success story. Analysis of changes in research benefits from relaxing the seed access constraint showed that net gains would increase by up to 30% if farmer access to improved seeds can be assured. Smallholder farmers are the major beneficiaries along with consumers and rural net‐buyers who gain from productivity‐induced lower market prices.

Excess Demand, Market Power and Price Adjustment in Clearinghouse Auction Markets for Water

This paper examines price variations in Northern Victorian (Australia) ‘clearinghouse’ auction markets for temporary water entitlements. The analysis assesses the role that the excess demand of unsatisfied bids and the market power of large volume bids, have on price variations. For four seasons (2002/3 to 05/6) and trading in the Greater Goulburn zone, results indicate that the excess demand of unsatisfied bids does significantly explain price variations, with elasticities ranging from 0.12 to 0.19. This relationship appears to be a result of the natural equilibrating nature of clearinghouse markets, rather than prices adjusting to previous levels of excess demand. Strategically, this implies that it is the accurate anticipation of demand and supply changes which is likely to be of most benefit to market traders. Market power is also illustrated to potentially impact on price variations, however, its impact appears to have been diminished in more recent seasons. Results suggest that large average demand bids (compared to average supply bids) negatively impact on prices with elasticities from −0.04 to −0.12. These results suggest that large demanders have demonstrated their ability to time their market bids to reap the rewards of lower market prices.

Contributions Of The Root And Tuber Expansion Programme (Rtep) To Livelihood Development Among Rural Farming Households In Enugu State, Nigeria

The primary objective of the study was to identify and assess the contributions of the Root and Tuber Expansion Programme (RTEP) after three(3) years of implementation IN Enugu State, Nigeria. Multistage sampling technique was used in the selecting respondents for the study. Overall, 200 farming households/farmers representing 100 beneficiaries and 100 non-beneficiaries respectively were used for the study. Primary data were generated through interviews using 200 structured questionnaires/interview schedules. Secondary data were collected from technical reports, and publications from the Enugu State Agricultural Development Programme (ENADEP) and the Projects Co-ordinating Unit (PCU), and other relevant establishments. The survey results showed that RTEP contributed to rural livelihood development mainly in terms of increased farm household income, farm input provision , extension contact, additional family/farm assets, food security as well as capacity building/skill training and improved storage/preservation methods. However, identified constraints to cassava production, processing and marketing include labour, land tenure system , transportation , farm inputs and capital. Others include equipment/tools, diseases and pests and low market price of cassava products. Although RTEP contributed to rural livelihood development, it is recommended that effective extension system, and a well co-ordinated livelihood development programme should be pursued to achieve greater agricultural productivity, increased household income and poverty reduction. Keywords: Root and Tuber Expansion Programme (RTEP), Livelihood development, rural farming households.Global Approaches to Extension Practice Vol. 2 (2) 2006: pp. 51-57

Competition and Price Variation when Consumers Are Loss Averse

We modify the Salop (1979) model of price competition with differentiated products by assuming that consumers are loss averse relative to a reference point given by their recent expectations about the purchase. Consumers' sensitivity to losses in money increases the price responsiveness of demand—and hence the intensity of competition—at higher relative to lower market prices, reducing or eliminating price variation both within and between products. When firms face common stochastic costs, in any symmetric equilibrium the markup is strictly decreasing in cost. Even when firms face different cost distributions, we identify conditions under which a focal-price equilibrium (where firms always charge the same “focal” price) exists, and conditions under which any equilibrium is focal. (JEL D11, D43, D81, L13)

Technical, economical and social actions of farmers to mitigate water deficit in Tamaulipas, Mexico

The present study was carried out in the Third Unit of Technical Assistance (TUTA) of the Irrigation District 026, in Tamaulipas, Mexico. Since the beginning of the construction and operation of the dam “El Cuchillo-Solidaridad” in Nuevo León in 1994, the decrease in available water resources was manifested in the study area; besides, there was a prolonged drought (1995–2003), an increase of input prices, and a low market price for maize. Nonetheless, the district was able to maintain the totality of its cultivated surface. The objectives were to study the actions farmers carried out to mitigate the impacts of water deficit and abandonment of land, and to determine the level of communication and organization among farmers. A total of 90,500 pieces of information (plot number, irrigated surface, crop sown, crop surface, and crop yield) were collected by the TUTA from 1994 to 2006, and were organized into a GIS environment. The farmers mitigated water deficit impact by modifying the crop pattern in a drastic way, from maize to sorghum because the latter requires less irrigation to maintain its productivity, and distributing the water in equal form. Therefore, they were able to avoid migration, and abandonment of the land. Under favorable water availability and international market prices for maize, a new shift in crop cultivation was done, from sorghum to maize. The drastic shifts in crop cultivation were possible because of the equal representation that each farmer has within their organization, and because of the close communication among themselves. This level of organization enabled farmers to make immediate decisions and to adapt quickly to environmental and economic restrictions within each agricultural cycle. These findings represent a new alternative to face agricultural drought in other countries with similar conditions.

Mango Industry in Taiwan and Its Survival Strategy in the Global Market

Taiwan, which joined the World Trade Organization in 2002, has been working hard to restructure its agriculture in an attempt to increase the international competitiveness of agricultural commodities. This paper examines Taiwan's mango industry in the globalizing economy and possible ways of expanding the export of mangos to Japan, a niche market for Taiwanese growers. Intensive field studies were conducted in Yujing village, Tainan county which is Taiwan's major mango-producing region.Following the end of World War II, the Irwin mango was successfully introduced from Florida, USA, which promoted the commercial production of mangos. However, Yujing now faces such problems as the aging of farmers, shortage of successors, dependence on temporary labor, increasing production costs, and low market prices due to overproduction. Cooperative marketing by farmers' associations is not functioning well. In addition, Taiwan's mangos, due to high production and delivery costs, are facing severe competition with products from other parts of the world in the Japanese market.Under such circumstances, a sustained market outlet needs to be established which could guarantee a stable market price so that farmers can continue to engage in mango production and to receive stable incomes. To achieve this, it is necessary to reinforce farmers' cooperative marketing as it protects farmers by stabilizing market prices and saving labor while ensuring the quantity required for export by cooperative sorting and grading of fruit. Farmers' cooperative marketing will also play an important role in coping with such problems as the aging of farmers, shortage of successors, and management of fields owned by elderly farmers.To maintain and develop mango exports to Japan, a system of traceability needs to be established as it is required in the Japanese market. Guaranteed purchase prices and contract farming may stabilize the supply of mangos. In the Japanese market, Taiwan also needs to enhance the value of its mangos with safety and quality. The price of Taiwan's mangos is lower than that of the same variety produced in Okinawa and Miyazaki Prefecture, Japan, and therefore, it would be possible for Taiwan to expand the export of mangos to Japan targeting general consumers. As Taiwan's agricultural products, including mangos, have difficulties in competing in the international market, one method of increasing competitiveness is to establish a brand targeting a niche market. The strategy of production and marketing plays a key role in surviving in the global market.

花卉価格低迷下における東京近郊の鉢花・花壇苗産地の対応‐埼玉県旧川里町屈巣・広田地区を事例として‐

This paper examines the production area of potted plants and flowerbed seedlings in Kawasato, Saitama Prefecture in the face of low market price of flowers. Farmers in Kawasato shifted from the greenhouse production of vegetables and vegetable seedlings to flowers in order to lower the production cost at the time of oil crises during the 1970s. Production technology of vegetable seedlings provided the basis of potted plant and flowerbed seedling production. A producers' cooperative association established by pioneering farmers and the existence of local flower market contributed to the emergence of a flower production core in Kawasato. Farmers became specialized in flowers during the 1980s by industrializing the system of production and expanding the production scale. Moreover, agricultural structure improvement projects and growers' cooperative association promoted the production and marketing of flowers. However, as the wholesale price of potted plants and flowerbed seedlings decreased due to oversupply since the beginning of the 1990s, flower growers were forced to come up with new strategy for survival. Mass production systems of flower seedlings were introduced. Farm size was enlarged. Employed labor was applied to production and shipment and the division of labor was established. Cooperative marketing association was established, which shipped flowers to local and remote flower markets. Thus, growers in Kawasato succeeded in responding flexibly to the low market price of flowers. Continued introduction of technological innovation in production and marketing plays an important role in sustaining a flower production area.

Composition of Electricity Generation Portfolios, Pivotal Dynamics and Market Prices

We use a simulation model to study how the diversification of electricity generation portfolios influences wholesale prices. We find that technological diversification generally leads to lower market prices but that the relationship is mediated by the supply to demand ratio. In each demand case there is a threshold where pivotal dynamics change. Pivotal dynamics pre- and post-threshold are the cause of non-linearities in the influence of diversification on market prices. The findings are robust to our choice of behavioural parameters and match close-form solutions where those are available.

Farmers’ agronomic and social evaluation of productivity, yield and N2-fixation in different cowpea varieties and their subsequent residual N effects on a succeeding maize crop

Cowpea–maize rotations form an important component of the farming systems of smallholder farmers in the forest/savannah transitional agro-ecological zone of Ghana. We evaluated five cowpea varieties for grain yield, N2-fixation, biomass production, and contribution to productivity of subsequent maize grown in rotation. We further analyzed the interrelationship between these technical dimensions and the social acceptability of these cowpea varieties for farmers. Cowpea grain yield ranged between 1.1 and 1.4 t ha−1 with no significant yield differences among the different varieties. Using the 15N natural abundance technique, the average proportion of N2 fixed ranged between 61% for Ayiyi and 77% for Legon prolific. This resulted in average amounts of N2 fixed in above-ground biomass ranging between 32 and 67 kg N ha−1, respectively. Variation in estimates due to differences in δ15N among reference plants were larger than differences between cowpea varieties. The amount of soil-derived N ranged from 15 to 20 kg N ha−1. The above-ground net N contribution of the cowpea varieties to the soil (after adjusting for N export in grains) was highest for Legon Prolific (31 kg N ha−1) due to high N2-fixation and high leaf biomass production. Maize grain yield after cowpea without application of mineral N fertilizer ranged between 0.4 t ha−1 with maize after maize to 1.5 t ha−1 with Legon Prolific. The N fertilizer equivalence values for the cowpea varieties ranged between 18 and 60 kg N ha−1. IT810D-1010 was ranked by the farmers as the most preferred cowpea variety due to its white seed type, short-duration, ease of harvesting and good market value. Despite the high leaf biomass production and high amount of N2 fixed by Legon Prolific, it was generally the least preferred variety due to lower market price, late maturity, least potential cash income (due to the red mottled seed type) and difficulty in harvesting. Although farmers recognized the contribution of cowpea to soil fertility and yields of subsequent maize, they did not consider this as an important criterion for varietal selection. Soil fertility improvement must be considered as an additional benefit rather than a direct selection criterion when designing more sustainable smallholder farming systems.

BOT application in China: Driving and impeding factors

To adapt to the specific investment environments of China, the generic Build–Operate–Transfer (BOT) process has evolved into five basic BOT types with foreign private sector participation: Cooperative Joint Venture BOT (CJV BOT), Equity Joint Venture BOT (EJV BOT), Non-official Wholly Foreign Owned BOT, Official BOT, and BOT Variant. This study identified the driving and impeding factors about BOT application in China, and a survey of experienced practitioners indicated that the most significant driving factors are Needing infrastructure development capital; the most significant general impeding factors include complex financial arrangement, complex contractual arrangement, high up-front cost, complex process, and high risk; and the most significant China-specific impeding factors are opaque and inadequate legal system, complex approval system, Regulatory constraints on market entry, and low market prices for infrastructure products and services.

The Syrian Jabali goat and its production system

The Jabali mountain goats inhabit the extremly unfriendly and harsh environment of western Syria, where they are kept by different ethnic groups, namely, the Alawits, Druses and Bedouins. The Jabali goat is a black goat, with dropping ears and a curved head; both sexes have horns. A survey was conducted in two different sites, namely, Al-Ghab in Hama district and in As-Sweida district. Forty-three household interviews were carried out to document the current production system. The system can be characterised as a low-input, mixed crop–livestock system. Goat keeping is only of minor importance to the household income compared to crop production or off-farm activities, but provide food in the form of milk, dairy products and meat for the family. Animals are kept on natural pasture most of the year; feed is only supplemented during winter. Farmers emphasise milk production. Milk products like ghee, Shinglish or Jameed are produced for home consumption and for sale. Major constraints mentioned by farmers are government policies for the conservation of forests, feed shortage and limited access to markets because of bad infrastructure and low market prices for their products. The fact that young people migrate to urban areas or work off-farm is seen as potential problem in the near future.

Using genotype × nitrogen interaction variables to evaluate the QTL involved in wheat tolerance to nitrogen constraints

Lower market prices and environmental concerns now orientate wheat (Triticum aestivum L.) breeding programs towards low input agricultural practices, and more particularly low nitrogen (N) input management. Such programs require knowledge of the genetic determination of plant reaction to N deficiency. Our aim was to characterize the genetic basis of N use efficiency and genotype x N interactions. The detection of QTL for grain yield, grain protein yield and their components was performed on a mapping population of 222 doubled haploid lines (DH), obtained from the cross between an N stress tolerant variety and an N stress sensitive variety. Experiments on the population were carried out in seven different environments, and in each case under high (N(+)) and low (N(-)) N supplies. In total, 233 QTL were detected for traits measured in each combination of environment and N supply, for "global" interaction variables (N(+)-N(-) and N(-)/N(+)), for sensitivity to N stress and for performance under N-limited conditions which were assessed using factorial regression parameters. The 233 QTL were detected on the whole genome and clustered into 82 genome regions. The dwarfing gene (Rht-B1), the photoperiod sensitivity gene (Ppd-D1) and the awns inhibitor gene (B1) coincided with regions that contained the highest numbers of QTL. Non-interactive QTL were detected on linkage groups 3D, 4B, 5A1 and 7B2. Interactive QTL were revealed by interaction or factorial regression variables (2D2, 3D, 5A1, 5D, 6A, 6B, 7B2) or by both variables (1B, 2A1, 2A2, 2D1, 4B, 5A2, 5B). The usefulness of QTL meta-analysis and factorial regression to study QTL x N interactions and the impact of Rht-B1, Ppd-D1 and B1, are discussed.

Preference reversals resulting from a market value heuristic

Two studies demonstrated preference reversals using consumer products. Some subjects made a choice between a pair of food or hygiene products while others assigned minimum selling prices to each product. Product pairs were selected such that one item had a high market price but was undesirable (e.g. eggplant roulettes) while the other item had a low market price but was desirable (e.g. a can of soda). As predicted, most subjects choose the low market price/desirable item, but the high market price/undesirable item was assigned a higher minimum selling price. Experiment 1 used a hypothetical questionnaire, while in Experiment 2 responses had real consequences. The results suggest a market value heuristic such that when decision makers are unsure of how to translate their preference into a specific dollar amount they substitute the product's market price for their own preference. The implication of this heuristic is that if merchants consistently set the retail price of a particular product at a certain level, consumers will use that retail price as the basis of their pricing evaluations and will come to value the product at the retail price.

Nobody farms here anymore: Livelihood diversification in the Amazonian community of Carvão, a historical perspective

Over the past 15 years income sources in the Amazonian community of Carvao have diversified to include government salaries, retirement and welfare benefits, and wages from an evolving informal service sector. These non-farm incomes are now more important to household incomes than the sale of agricultural products. Out of 80 households only three families were found to depend almost entirely on the sale of agricultural goods for cash income. Agriculture is still a part of most families’ livelihoods; however, production today is mainly a subsistence activity. Recent changes in Carvao are consistent with trends of livelihood diversification observed in rural societies across the globe. However, current research reveals that Carvao is different from other case studies in a number of ways. A history of livelihoods illustrates that residents in Carvao have always engaged in a range of activities, including farming, extractive activities, and wage labor. New incomes are the result of new jobs in the public sector and social policies benefiting the rural poor. In contrast to the literature on livelihood diversification, the decentralization of the federal government in Brazil has resulted in greater opportunities for rural income and employment. Consistent with recorded trends, research shows that small farmers in Carvao have down-sized agricultural production. Farmers cite low market prices (the result of vertical integration of local markets) as one cause of this decline. Residents, especially small farmers, interested in diversifying agricultural production are limited by inadequate extension services and credit, and younger residents seek public sector employment. Income diversification has increased livelihoods security; however, future livelihoods will depend on new economic growth. Given the stagnating public sector and a weak industrial sector, production geared toward growing urban markets is a viable means for further income generation in Carvao.

2001: A Household Analysis of Huastec Maya Agriculture and Land Use at the Height of the Coffee Crisis

Over the last decade, historically low market prices for Coffea arabica have affected smallholder shade coffee-growing households throughout northern Latin America. In an effort to better understand household response to the coffee crisis and associated landscape changes, this paper examines agricultural production choices and land use patterns among Huastec Maya coffee-growing households. Using data compiled from 47 household interviews, I describe the cultural-geographical landscape in which the Huastec Maya land use system is embedded. In addition, I examine the economics of household production through a financial cost-benefit analysis and through an exploration of the relationship between land availability and land use patterns. Results show that economic inputs and returns from agriculture are highly variable, and that, in 2001, coffee cultivation was not a viable cash-generating strategy for most households. Land availability was found to have a significant effect on land use decisions, especially the proportion of land area devoted to fallow. Most importantly, however, the case study suggests that a purely economic approach does not suffice in explaining why the Huastec Maya continued to grow coffee in 2001, after years of low prices. Household production choices and livelihood strategies must also be viewed within a cultural context.

The Road More Travelled: Web Traffic and Price Competition in Internet Retailing

The Internet is perceived to increase market efficiency, and thus reduce price dispersion. Yet the empirical evidence to support this proposition is mixed. Internet retailers of homogeneous products may choose to actively differentiate their stores and offerings in order to avoid competing just on price. We explore how differentiation among these retailers affects pricing and web traffic. We present empirical results from two homogeneous goods markets, software and personal digital assistants, using price data for a basket of goods from Internet retailer websites. Based on data collected from 90 different retailers and 1,847 product prices, we find that high traffic is associated with lower market prices. However, Internet retailers can mitigate the tendency to compete on price by relying on external linkages from other websites. Furthermore, Internet retailers may use economies of scale and participation with shopbots in conjunction with charging lower prices. Surprisingly, Internet retailer use of economies of scope is associated with higher prices. This indicates that firms may be in a position to avoid price competition by selling a wider product variety.

Mid‐infrared spectroscopy as a new tool for the evaluation of fish freshness

SummaryFrozen fish usually have a much lower market price than fresh fish, hence, adulteration could occur. This paper focuses on the use of mid‐infrared (MIR) spectroscopy combined with chemometric tools to determine whether fish has been frozen–thawed. A total of twenty‐four fish samples (fresh fish (n = 12) and frozen–thawed fish (n = 12)) were investigated. The principal component analysis and the factorial discriminant analysis were applied to the three spectral regions in the MIR of 3000–2800 cm−1, 1700–1500 cm−1 and 1500–900 cm−1. Within the 1500–900 cm−1 spectral region, correct classification (CC) of 100% and 75% was observed for the calibration and validation spectra, respectively. Improved classification was obtained from the 3000–2800 cm−1 spectral region, with CC of 100% and 87.5% of the calibration and validation spectra, respectively. It can be concluded that the 3000–2800 cm−1 and 1500–900 cm−1 spectral regions may provide useful fingerprints allowing the differentiation between fresh and frozen–thawed fish. These regions can be considered as a reliable indicator of fish freshness.

Customer Directed Advertising and Product Quality

This paper studies the relationship between three key elements of the marketing mix, namely, price, product, and promotion, in a model where a seller employs informative advertising to launch a new product. We propose a fairly general advertising technology for the study of three promotional strategies—mass, imperfectly targeted, and customer directed advertising (CDA). We find that both the private and the social incentives to use distinct advertising strategies are aligned, and that sales are likely to be promoted through CDA. Compared to mass advertising, with CDA the social planner reduces quantity and downgrades quality whereas the seller sometimes upgrades it. Our model of targeting with endogenous product quality provides some new insights into the way the transition from mass to specialized advertising can affect market outcomes. Quality distortions imply that (i) even if CDA increases the market price, the degree of market power need not increase and (ii) CDA may yield a welfare loss even if it leads to a lower market price.