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peer-reviewed research article

Almond advertising yields net benefits to growers

authors

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

publication information

California Agriculture 55(1):20-25. DOI: 10.3733/ca.v055n01p20. January-February 2001.

abstract

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.

author notes

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.

References

Alston JM, Carman HF, Christian J, et al. Optimal Reserve and Export Policies for the California Almond Industry: Theory, Econometrics and Simulations. Giannini Foundation Monograph no. 1995. 42:

Alston JM, Chalfant JA, Christian JE, et al. The California Table Grape Commission's Promotion Program: An Evaluation. Giannini Foundation Monograph no. 1997. 43:

Bushnell PG, King G. The Domestic and Export Markets for California Almonds. Giannini Foundation Research Report no. 1986. 334:


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