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Demand Substitution Between Natural, Flavored, and Synthetic Citrus Juices

Published online by Cambridge University Press:  28 April 2015

Wen S. Chern
Wen S. Chern*
Affiliation:
Oak Ridge National Laboratory, Florida Department of Citrus and University of Florida
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Extract

Formulation of marketing policies often is based on the knowledge of various demand elasticities for the commodities under consideration. One important aspect of demand analysis is to inquire qualitatively or quantitatively into the extent of demand substitution between commodities. The Florida citrus growers and processors have been much concerned about the impact of flavored and synthetic citrus product substitutes for which the market, in terms of absolute sales, has doubled in less than one decade (Table 1).

The entry of a new product often takes place during the time when a dramatic leftward shift in supply occurs. A most recent example is the introduction of textured vegetable protein in ground beef when a severe shortage and a dramatic increase in the price of beef occurred in 1973. In the case of the citrus juice market, the introduction and market penetration of synthetic and partially natural citrus-flavored drinks were stimulated during the two Florida freezes in 1957 and 1962.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 6 , Issue 2 , December 1974 , pp. 9 - 14
Copyright
Copyright © Southern Agricultural Economics Association 1974

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References

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