cm aaea pomegranates · • texas pomegranate growers’ cooperative. 1/20/2012 4 goal 1: market...

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1/20/2012 1 Did You Say Pomegranates in Texas? Production and Marketing Strategies for a Novel Crop Callie McAdams Department of Agricultural Economics Texas A&M University Committee Chair: Marco A. Palma, Ph.D. 2011 Joint AAEA and NAREA Annual Meeting July 24-26, 2011 Pittsburgh, PA Improving Lives. Improving Texas. Outline Opportunity Addressed Identification of Target Audience Extension Program – Goals – Research – Presentation of Information Extension Team Evaluation of Effectiveness

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Page 1: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

1/20/2012

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Did You Say Pomegranates in Texas?Production and Marketing Strategies for a Novel Crop

Callie McAdamsDepartment of Agricultural EconomicsTexas A&M UniversityCommittee Chair: Marco A. Palma, Ph.D.

2011 Joint AAEA and NAREA Annual Meeting

July 24-26, 2011

Pittsburgh, PA

Improving Lives. Improving Texas.

Outline

• Opportunity Addressed

• Identification of Target Audience

• Extension Program

– Goals

– Research

– Presentation of Information

• Extension Team

• Evaluation of Effectiveness

Page 2: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Two Intersecting Trends• 1. Global Functional Food

Awareness

Two Intersecting Trends• 2. Pomegranates

– Reduction in risk for chronic illnesses (Seeram et al. 2006)

– Pomegranates contain high levels of polyphenols, a type of antioxidant (Lansky and Newman 2007)

Diseases

Cancers InflammatoryCardio-vascular

Neuro-degenerative

Page 3: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Why Plant A Different Crop?

• Diversification

– Increase Profits

– Improve Risk Management

Source: http://aww.org

Potential Growers Targeted

• Niche Market

– Small- to Medium-Sized Farmers

• Likely Growing Region

• Texas Pomegranate

Growers’ Cooperative

Page 4: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Goal 1: Market and Consumer Info on Pomegranates

Distribute Consumer

Info

Marketing Plan

Development

Implementation & Consumer Awareness

TIME

TIME

Goal 2: Access Growing Info and Opportunities

Provide Info on Production

Use of Info for Entry and Production Decisions

Profitable Decision and Successful Marketing

TIME

Page 5: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Extension Program: Research

• State of the Pomegranate Industry

– U.S.: Most of industry in California

– World top countries:

• Iran, India, China, U.S.

Research: Consumer Driven Approach

• Survey

– Awareness of pomegranates

– Decision factors

Taste,

FreshnessNutrition,

ConvenienceGrowing Location

Page 6: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Research Methods● Two Part Procedure:

(1) An 11th-price sealed-bid auction for 7

products

(2) A nonhypothetical ranking procedure for 8

product options: the 7 products plus the

option of “no product”

● 4 Rounds of Information Treatments:

(A) Baseline

(B) Tasting Information

(C) Health and Nutrition Information

(D) Anti-Cancer Information

Research Methods

Page 7: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Extension Program: Research• Consumer Driven Focus: Auction Results

• Bid Censoring: 18.4% of bids censored at $0.00

Research Results

(b) Unengaged bidders are those who submitted bids of $0.00 for all rounds for the specified fruit product.

(c) "All products" refers to bidders who were unengaged for all seven of the seven included fruit products.

(d) Estimated standard deviation for the random effects specified at the individual level.

(e) Likelihood Ratio Test of Mixed Linear Model versus Linear Regression.

(a) Single (*), double (**), and triple (***) asterisks are used to denote significance at the 0.10, 0.05, and 0.01

Page 8: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Consumer Preference Research

• Auction and Rankings

– RTE, Juice > Whole Fruits

Less Important More Important

Research Results

• Significant differences in paired

individual bids across

information treatments

• Implied bid difference model ≠ Full bid models

• Texas varieties WTP

• Demographic information does not

predict change in WTP

Page 9: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Research Results

• Providing info = WTP for whole fruits

• Interaction effect :

• Information treatments x Product characteristics

• In Texas, suggests need for product awareness and tasting opportunities

Extension Program: Presentation of Information• Factsheet on Pomegranates and

Pomegranate Markets

• Press Release on Pomegranate

Industry

Page 10: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Extension Program: Presentation of Information

• Powerpoint Presentation of

Research Results

Extension Program: Presentation of Information

• New Pomegranate Grower

Checklist

Page 11: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Extension Team

• Departments:

• Extension Personnel:

– County Agents

– Specialists

• Responsibilities:

– Contribute to program

– Outreach

Evaluation of Effectiveness

• 1. Handout Counts

• 2. Follow-up Discussions

– Local Extension Agents

– Texas Pomegranate Growers Cooperative, Inc.

– Information session participants

Page 12: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Evaluation of Effectiveness

• 3. Follow-up surveys

Highlights• Provide Information

– Research-based information on a

perceived opportunity

• Broad-Reaching Extension

Delivery

– Delivery by a cross-section of

Extension in a number of ways

• Collaborative Effort

– Aimed at a targeted audience

Page 13: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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References

• Seeram, N. P., Y. Zhang, J. D. Reed, C. G. Krueger, and J. Vaya. 2006a.

“Pomegranate Phytochemicals.” In N. P. Seeram, R. N. Schulman, and D.

Heber, eds. Pomegranates, Ancient Roots to Modern Medicine. Boca Raton

FL: CRC Press, pp. 3-29.

• Lansky, E. P. and R. A. Newman. 2007. “Punica granatum (Pomegranate) and

Its Potential for Prevention and Treatment of Inflammation and Cancer.” Journal

of Ethnopharmacology 109:177-206.

Questions?

• Contact Info:

Callie McAdams

[email protected]

Page 14: CM AAEA Pomegranates · • Texas Pomegranate Growers’ Cooperative. 1/20/2012 4 Goal 1: Market and Consumer Info on Pomegranates Distribute Consumer Info Marketing Plan Development

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Improving Lives. Improving Texas.

Detailed Research Results