The farm - retail price spread: the case of postharvest pesticides in fresh grapefruit packinghouses

The effect of a postharvest pesticide ban on the grapefruit industry is investigated using the marketing margin theory and Gardner's six equation model. The results indicated that such a ban could mean greater postharvest losses for grapefruit packinghouses, increased chemical costs and a decreased demand for the safer grapefruit products. However, most of the price shock will be absorbed by the growers and not the packinghouses.