The Feasibility of Producing and Marketing Fresh Vegetables in Central and Western New York
Barnes, Raymond J.; White, Gerald B.
The potential for growers in Western New York to grow, pack, and market 10 fresh vegetable crops was investigated. Terminal market price data for 1984-1988 were collected and analyzed for each crop. The cost of central packing, marketing, and transportation to terminal markets was estimated. The resulting net returns to growers and the costs of production using recommended cultural practices were calculated. Results, which depend very heavily on particular assumptions used in the study, indicated that tomatoes and green beans were profitable in an average season, giving positive returns to above total costs of production and marketing. Three crops (green peppers, broccoli, and cucumbers) had positive returns above variable costs, indicating that some returns would accrue to fixed resources. Four other ~rops (sweet corn, zuchinni, winter squash, and cauliflower) had negative returns to variable costs, indicating that they were unprofitable to grow and market through a central packing facility. The tenth crop, cherry tomatoes, could not be analyzed because of incomplete data.. Market window analysis, which incorporated a risk factor, indicated that six crops had market windows for at least one week in the season. These crops were snap beans, broccoli, cucumbers, peppers, tomatoes, and zuchinni. The market windows identified were, however, typically very early or very late in the season when few observations of prices were available and production risk is substantial. These results show some opportunities for expanded production of tomatoes, green beans, peppers, broccoli, and cucumbers for growers who are willing and financially able to incur substantial risk.
A.E. Res. 91-1
Charles H. Dyson School of Applied Economics and Management, Cornell University