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Organic
Apple Production in Washington State: an Input-Output Analysis
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by
Pon Nya Mon and David Holland* |
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 Printable
copy of report. |
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WP
2005-3 - SES Working Paper Series |
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Organic
food consumption in the U.S. has been steadily increasing in recent
years. The objective of this paper is to provide an Input-Output (IO)
based economic impact analysis for organic apple production in Washington
State. The analysis is divided into two scenarios: first the comparison
of the economic impact of organic versus conventional apple production
for a final demand increase of one million dollars. The second analysis
looks at the economic impact of organic and conventional apple production
in terms of a given unit of land (1,000 acres of production). Both
output and employment effects are estimated under each scenario. In
addition, the net economic impact of 1,000 acres decrease in conventional
apple production and 1,000-acre increase in organic production is
analyzed. |
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The
organic apple sector was more labor intensive than the conventional
sector and total impact increased employment in all scenarios was
higher for the organic apples than for the conventional apples.
The organic apple sector used less intermediate inputs per unit
of output than conventional production. As a result, the indirect
economic effect was lower for the organic sector than the conventional
sector. |
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Moreover,
the total (direct, indirect, and induced economic impact as measured
by sales was lower for organic production under a one million dollars
increase in final demand. However, the two production methods are
not directly comparable in this scenario because of the higher prices
associated with organic apples. |
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The
second scenario (per unit of land) showed greater total economic
impact measured as sales or employment was higher for organic apples
compared to conventional apple production.
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If you found materials of interest on this site you may also want
to visit the Center for Sustaining Agriculture and Natural Resources
- http://csanr.wsu.edu/ - web
site. The CSANR mission is to develop and foster agriculture and
natural resource management that is economically viable, environmentally
sound, and socially acceptable through interdisciplinary relationships
between WSU, growers, industry, environmental groups, agencies,
and the people of Washington. Featured are Program Areas, Educational
Opportunities, Information Resources, Funding Sources, and more. |
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*Pon
Nya Mon is a graduate student in the Department of Political Science
and David W. Holland is a professor, Department of Agricultural and
Resource Economics, Washington State University. This work was supported
by project number WNP00383, College of Agriculture and Home Economics,
WSU. |
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