Organic apple production in Washington State: An input–output analysis

Abstract

This paper provides an input-output (I/O)-based economic impact analysis for organic apple production in Washington State. The intent is to compare the economic 'ripple' effect of organic production with conventional production. The analysis is presented in two scenarios: first we compare the economic impact of organic versus conventional apple production for a final demand increase of US$1 million as measured in sales. In the second analysis, the economic impacts of organic and conventional apple production are compared in terms of a given unit of land (405 ha of production). Both state-wide output (sales) and employment (jobs) impacts are estimated under each scenario. Results are presented in terms of direct, indirect, and induced economic impact. Organic apple production was more labor intensive than conventional production. While the organic apple sector used less intermediate inputs per unit of output than conventional production, it also produced higher returns to labor and capital. As a result, the indirect economic effect was lower for the organic sector than the conventional sector, but the induced economic effect was higher for organic. Given the organic price premium, the economic impact (direct, indirect and induced) was larger for organic apple production than conventional apple production.

Energy Inputs in Food Crop Production in Developing and Developed Nations

“…The input:output ratio is 1: 0.18. [86]; b) A person in the U.S. uses 9,450 liters of oil equivalents per year and works 2,000 hours per year. Thus, it was calculated that the labor input in this apple system utilized 20,000 kcal; c) Pimentel, 1980 [22]; d) Estimated; e) USDA, 2007 [85]; f) 55,000 kcal/kg; g) 2,026 kcal/kg; h) 2,290 kcal/kg; i) Funt, 1980 [87]; j) Calculated; k) Machinery, fuel, and lime transported; l) 0.34 kcal/kg Apple production in the United States is more energy intensive than orange production (Tables 14 and 15).…”

Organic Apple Production in Two Humid Regions: Comparing Progress in Pest Management Strategies in Iowa and New Zealand

“…With global markets for organic products continuing to rise, organic apple producers should be positioned to take advantage of this increasing trend. Organic apple producers using intensive insect and disease management programs have been able to compete with conventional orchards (Delate et al, 2005;Mon and Holland, 2006;Reganold et al, 2001;Roth et al, 2005; as a result of the premium prices paid by consumers for the additional costs and perceived benefits of organic production. Smaller fruit size is often cited as a limitation when comparing organic apples with their conventional counterparts, but many consumers have accepted smaller fruit size, particularly in local markets (Ames and Kuepper, 2004).…”

Economic Impact of a Potential Expansion of Pest Infestation: Apple Maggot in Washington State

“…Third, we estimate the economic impacts of apple maggot further spreading to appleproduction areas. I/O modeling is frequently used in economic impact analyses, including those related to agricultural commodities (e.g., Armah et al, 2016;Collart et al, 2015;Mon and Holland, 2006) and pest or disease (e.g., Evans et al, 2010;Pendell et al, 2007;Zapata et al, 2016). Because of the model's underlying assumptions, such as fixed proportion of inputs and lack of supply-side constraints (Bess and Ambargis, 2011;Zhao et al, 2006), results tend to be high but can be used as an upper-bound estimate of impacts (Hughes, 2003;Rose and Liao, 2005).…”