question about commodity promotioinal groups

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    IMPLAN Support
    Hello Dan, Could you provide further clarity as to the focus of your study? Are you seeking to measure the economic impact of just the promotional/checkoff groups? Or are you also seeking the economic impact of the agricultural industries that the groups work with? In other words, are your expenditure values related to the operations of the agricultural industries or to the operations of these promotional groups? Regards, IMPLAN Staff
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    danhanselka
    Good Morning IMPLAN Staff, Thank for the quick response. The study is seeking to measure the change in agriculture industries sales resulting from promotion or checkoff funding. As an example, the beef checkoff program - consumers purchase beef at the grocery store, but we need to separate the impacts on the grocery stores, transportation, beef packing, etc. from our interest in the impact to farmers. I hope this clarifies and provides more detail of the study. I would appreciate any assistance or help you could provide on how to measure this impact of the promotional/checkoff groups or the methodology to follow. Thank you again for your help with this study. Regards, Dan
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    IMPLAN Support
    Hello Dan, If you are starting with a retail sales value (such as purchases of packaged meat from a grocery store), you can margin the producing sector for that commodity. Margining the producing sector splits the sales value across the value chain (producer, transportation, wholesaler, retail). Impacts to the farmers that supplied the cattle will be accounted for in the indirect impact (the meat processing industry's purchases of cattle). Regards, IMPLAN Staff
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    danhanselka
    Good Morning IMPLAN Staff, Thank you for the information you provided regarding my question. I followed the methodology you suggested but another question has surfaced. There are no margins or I cannot margin for sector 11 (beef cattle ranching and farming), sector 12 (dairy cattle and milk production), and sector 148 (paperboard mills). These are 3 sectors that need to be included in the economic impact analysis. Do you have any suggestions on how to handle the sales for these 3 sectors that cannot be margined. I would appreciate any assistance you could provide on this subject. Thank you again for all of your help and assistance. Regards, Dan
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    IMPLAN Support
    Hello Dan, We get our margin data from the latest BEA Benchmark I-O tables. Not all sectors will have margins, namely those whose product is not sold to final consumers (for example, cattle need to be slaughtered and processed before being sold to final consumers through a retail/wholesale outlet) or whose product is a service (which is purchased straight from the service provider, with no need for a wholesale/retail outlet). In either of those cases, there is no wholesaler/retailer involved and thus no wholesale/retail mark-up (margin). If these are actual purchases of live cattle and you have data as to the price received by the cattle ranchers vs. the mark-up the wholesalers receive (if there are any wholesalers involved), you can model each separately with no need to use IMPLAN’s margin functionality. If, on the other hand, these are purchases of slaughtered beef carcasses or butchered cuts of beef, you will want to set up the analysis using sector 89 (Animal, except poultry, slaughtering) or 90 (Meat processed from carcasses), respectively, and apply margins. The beef and cattle ranching sector (11) will experience an impact via the indirect effects (i.e., as sector 89/90 purchase cattle). Following is an article that talks explicitly about margining a producing sector and can serve as a handy guide. http://support.implan.com/index.php?option=com_content&view=article&id=451#margining-a-producing-sector Regards, IMPLAN Staff
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    danhanselka
    Hello IMPLAN Staff, I want to thank you for all of your help and assistance in answering my questions for this research project. Regards, Dan
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