Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Effectiveness of state-level pecan promotion program evaluated

16.04.2010
Texas program found effective in augmenting pecan sales

Pecans are the only nut native to the U.S. grown on a commercial scale. These popular nuts are "alternate" or "biennial bearers", a trait that leads to yearly production and quality fluctuations.

The annual instability in crop supply and quality can cause major problems for growers seeking to develop and maintain consistent pecan supplies in response to domestic and foreign market demand. To help growers address challenges related to promoting and marketing their finicky pecan crops, several state-level marketing initiatives have been established during the past two decades.

A recent study commissioned by the Texas Pecan Board evaluated the economic effectiveness of the state-level program in expanding sales of Texas pecans. A research team from Texas A&M University published the results of their evaluation in a recent issue of the American Society for Horticultural Science's journal HortScience. The TPB promotion expenditures were found to have effectively increased the demand for Texas pecans and the quantity of total pecans sold over the 8 years since the program's inception.

The pecan industry is the only U.S. nut industry with no national-level generic promotion program, legislation authorized by Congress to provide grants and funding for promotion of other farm commodities. Pecan growers rely instead on state-level pecan promotion programs such as the Texas Pecan Checkoff Program, administered by the Texas Pecan Board in an attempt to "increase the welfare of Texas pecan growers". Texas pecan promotion programs are financed through an assessment, or ''checkoff'' on pecan sales from growers to first handlers; growers with 500 pecan trees or more and at least 15 acres are required to pay the assessment. Historically, annual pecan checkoff collections in Texas varied from a low of $85,500 in 2005 to a high of $167,600 in 1999�. TPB spends the annual checkoff collections on promotional activities in seven different categories.

The research study focused on three areas: determining the effects of the Texas Pecan Promotion Program on sales of Texas pecans, assessing the level of effectiveness related to pecan variety (native versus improved varieties), and establishing the return on investment realized by Texas pecan growers from the promotion of sales of Texas pecans.

According to Marco Palma from the Department of Agricultural Economics at Texas A&M University, the Texas Pecan Promotion Program effectively increased Texas sales of improved pecan varieties. "The critical question", Palma noted, "is whether the cost of achieving the increase has been less than the revenues generated by the increased sales—in other words, whether the promotion program can be judged to be 'effective' depends not only on whether sales have been enhanced by the program, but whether and how much return on their investment contributors to the program have received." The evaluation showed that TPB pecan promotion programs generated a net revenue to the industry of $35 for every pecan checkoff dollar spent on promotion or $30.5 on a discounted, present-value basis.

The researchers established that the promotional expenditures of the Texas Pecan Board funded by the Texas Pecan Checkoff Program were effective in augmenting Texas pecan sales. Specific findings of the study showed that TPB promotion expenditures effectively increased the demand for Texas pecans and the quantity of total pecans sold over the 8-year period (19992007), and sales of improved varieties of pecans were the main beneficiary of the promotion program.

The report suggested that state-level pecan promotion programs are greatly underfunded and observed that "allocating state-level pecan checkoff funds away from promotion of sales for home consumption to the promotion of industrial uses might reduce overall returns from pecan promotion."

The complete study and abstract are available on the ASHS HortScience electronic journal web site: http://hortsci.ashspublications.org/cgi/content/abstract/44/7/1914

Founded in 1903, the American Society for Horticultural Science (ASHS) is the largest organization dedicated to advancing all facets of horticultural research, education, and application. More information at ashs.org

Michael W. Neff | EurekAlert!
Further information:
http://www.ashs.org

More articles from Agricultural and Forestry Science:

nachricht Fighting a destructive crop disease with mathematics
21.06.2017 | University of Cambridge

nachricht Unusual soybean coloration sheds a light on gene silencing
20.06.2017 | University of Illinois College of Agricultural, Consumer and Environmental Sciences

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Can we see monkeys from space? Emerging technologies to map biodiversity

An international team of scientists has proposed a new multi-disciplinary approach in which an array of new technologies will allow us to map biodiversity and the risks that wildlife is facing at the scale of whole landscapes. The findings are published in Nature Ecology and Evolution. This international research is led by the Kunming Institute of Zoology from China, University of East Anglia, University of Leicester and the Leibniz Institute for Zoo and Wildlife Research.

Using a combination of satellite and ground data, the team proposes that it is now possible to map biodiversity with an accuracy that has not been previously...

Im Focus: Climate satellite: Tracking methane with robust laser technology

Heatwaves in the Arctic, longer periods of vegetation in Europe, severe floods in West Africa – starting in 2021, scientists want to explore the emissions of the greenhouse gas methane with the German-French satellite MERLIN. This is made possible by a new robust laser system of the Fraunhofer Institute for Laser Technology ILT in Aachen, which achieves unprecedented measurement accuracy.

Methane is primarily the result of the decomposition of organic matter. The gas has a 25 times greater warming potential than carbon dioxide, but is not as...

Im Focus: How protons move through a fuel cell

Hydrogen is regarded as the energy source of the future: It is produced with solar power and can be used to generate heat and electricity in fuel cells. Empa researchers have now succeeded in decoding the movement of hydrogen ions in crystals – a key step towards more efficient energy conversion in the hydrogen industry of tomorrow.

As charge carriers, electrons and ions play the leading role in electrochemical energy storage devices and converters such as batteries and fuel cells. Proton...

Im Focus: A unique data centre for cosmological simulations

Scientists from the Excellence Cluster Universe at the Ludwig-Maximilians-Universität Munich have establised "Cosmowebportal", a unique data centre for cosmological simulations located at the Leibniz Supercomputing Centre (LRZ) of the Bavarian Academy of Sciences. The complete results of a series of large hydrodynamical cosmological simulations are available, with data volumes typically exceeding several hundred terabytes. Scientists worldwide can interactively explore these complex simulations via a web interface and directly access the results.

With current telescopes, scientists can observe our Universe’s galaxies and galaxy clusters and their distribution along an invisible cosmic web. From the...

Im Focus: Scientists develop molecular thermometer for contactless measurement using infrared light

Temperature measurements possible even on the smallest scale / Molecular ruby for use in material sciences, biology, and medicine

Chemists at Johannes Gutenberg University Mainz (JGU) in cooperation with researchers of the German Federal Institute for Materials Research and Testing (BAM)...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Plants are networkers

19.06.2017 | Event News

Digital Survival Training for Executives

13.06.2017 | Event News

Global Learning Council Summit 2017

13.06.2017 | Event News

 
Latest News

Quantum thermometer or optical refrigerator?

23.06.2017 | Physics and Astronomy

A 100-year-old physics problem has been solved at EPFL

23.06.2017 | Physics and Astronomy

Equipping form with function

23.06.2017 | Information Technology

VideoLinks
B2B-VideoLinks
More VideoLinks >>>