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Spatial equilibrium analysis for Canadian apple production Gilmor, Gary

Abstract

The main purpose of this study was to examine aspects of interregional competition in fresh apple production in Canada. Two spatial equilibrium models, namely the transportation model and the supply-distribution model were used in establishing interregional trade patterns for fresh apples under given efficiency criteria, with major reference to the period July 1st. 1965 to June 30th 1966. The area studied included all of Canada which was disaggregated into supply and demand regions each having a representative point of origin. The transportation model comprised 9 domestic supply points, allowing for import points of entry, and 10 domestic demand points. The supply-distribution model utilized the four major apple producing regions in Canada together with three United States supply points, while maintaining the same 10 domestic demand points. The results of the study indicate that the Canadian fresh apple industry tends to be oriented around two distinct domestic market areas, one composed of the western provinces and the other the eastern provinces. Hence, British Columbia as a producing region for fresh apples can be identified mainly with all demand regions in the west as far as Winnipeg. In the east, the three major apple producing areas: Nova Scotia, Quebec and Ontario can be identified mainly with their own regional demand centres. With the inclusion of the three United States supply points in the analysis, the overall trading pattern did not undergo any significant change. Under two situations tested, no recommendation was made for shipment of fresh apples from a United States supply point to a Canadian demand point. Under the conditions assumed, therefore, production of fresh apples in the United States was not shown as meeting the competition in Canada from domestic producers. While the model incorporates several simplifying assumptions, the study produces new information on the competitive structure of Canadian fresh apple production. Furthermore, it would appear to exhibit methodological value in the sense that additional data accumulation and refinement would permit an even more penetrating analysis of interregional competition using the type of models already applied.

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