The economics of on-farm processing: model development and an empirical analysis Report as inadecuate




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Recent trends in the developments of the Common Agricultural Policy suggest an increasing attention towards rural development issues.On-farm processing may offer an alternative for diversification, income generation and rural development in the event of increasinglyderegulated agricultural markets. In this study, the economics of on-farm processing for the case of the Swedish potato industry is examined.An interregional partial equilibrium model is developed. Various stages of the potato marketing chain are explicitly mbdelled. It isempirically demonstrated that, in some regions, on-farm processing is a part of a socially optimal industry structure. Furthermore, it isshown that on-fmm processors are more robust towards import competition than bulk product producers. Hence, the results support thenotion that small scale processing may contribute towards satisfying some of the objectives of an effective rural development agenda.Published by Elsevier Science B.V.

Subject(s): Production Economics

Research Methods/ Statistical Methods

Issue Date: 1998-03

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/174376 Published in: Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 18, Issue 2 Page range: 177-189

Total Pages: 14

Record appears in: International Association of Agricultural Economists (IAAE) > Agricultural Economics: The Journal of the International Association of Agricultural Economists





Author: Ekman, Sone ; Andersson, Hans

Source: http://ageconsearch.umn.edu/record/174376?ln=en







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