Arkansas catfish farmers and marketing contracts: Some insights into motivations

Kwamena Quagrainie, Todd Kuethe, Carole Engle

Research output: Contribution to journalArticlepeer-review

Abstract

Interest in sales contracts in the catfish industry increased in the late 1990s and early 2000s as a result of increased import pressures and lower product prices. The study uses survey data fitted to a probit model to examine the motivations for contracting sales, and whether farm size is an important determinant of sales contracts usage. The article concludes that Arkansas catfish farmers with large acreages and therefore large volumes of production have a high probability of utilizing contracts to handle their sales but not necessarily with privately-owned independent processors. The farmers are not motivated to engage in sales contracts by reduction in income or price risks. They are motivated by production and management issues, which appear consistent with reductions in transactions costs relating to asset specificity and quality measurement as the reason for contracting.

Original languageEnglish (US)
Pages (from-to)39-51
Number of pages13
JournalAquaculture Economics and Management
Volume11
Issue number1
DOIs
StatePublished - Jan 1 2007
Externally publishedYes

Keywords

  • Catfish
  • Contracting
  • Market transaction

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Aquatic Science
  • Ecology

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