Almond advertising yields net benefits to growers
John M. Crespi, Department of Agricultural and Resource Economics, UC Davis and Department of Agricultural Economics, Kansas State University
Richard J. Sexton, Department of Agricultural and Resource Economics, UC Davis
California Agriculture 55(1):20-25. DOI: 10.3733/ca.v055n01p20.
This study evaluates the economic impacts of advertising and promotion expenditures funded under the almond marketing order. Over the crop years 1962/63 through 1997/98, the correlation of industry promotion and demand was positive and statistically significant. Almond advertising has yielded marginal benefits between $3 and $10 per dollar spent. The 1994/95 through 1996/97 suspension of the promotion program reduced grower profits in the range of $88 million to $231 million during the suspension period.
The authors are grateful to the staff of the Almond Board of California for contributing data to the study. Blue Diamond Growers also contributed key data to the study, and the cooperation of Blue Diamond's Director of International Sales, Rex Lake, is much appreciated. The authors are also grateful for the comments of two anonymous referees.