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United States hop industry and the volume control provisions of the United States federal hop marketing order



United States hop industry and the volume control provisions of the United States federal hop marketing order



Bulletin Agricultural Research Center Washington State University: (XT 0097)



From 1966 on, Federal Marketing Order No. 991 has been in effect. The order contains a volume control provision that limits the quantity of hops marketed from current production and, at the same time, discourages overproduction or underproduction. Marketing Order No. 991 includes quality control, research and development, volume limitation, and reserve pool provisions. An empirical analysis of the comparison of Hop Administrative Committee (HAC) projected components of supply and demand to actual market results was conducted. The analysis revealed that on the average, the committee overestimated demand components and underestimated supply components. As a result, it can be partially concluded that the HAC has not unduly used its market power in restricting the quantity of hops available to the market from domestic production.

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