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

Published online by Cambridge University Press:  12 February 2007

Pon Nya Mon  and
David W. Holland
Pon Nya Mon*
Affiliation:
Department of Political Science/Criminal Justice Program, Washington State University, Pullman, WA, 99164, USA.
David W. Holland
Affiliation:
Department of Agricultural and Resource Economics, Washington State University, Pullman, WA, 99164, USA.
*
*Corresponding author: Email: honsawatoi@aol.com
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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.

Keywords

conventional and organic apple productionmultiplier effectsoutputemployment effectsIMPLAN
Type
Review Article
Information
Renewable Agriculture and Food Systems , Volume 21 , Issue 2 , June 2006 , pp. 134 - 141
Copyright
Copyright © Cambridge University Press 2006

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