FRESH VERSUS PROCESSED UTILIZATION OF FLORIDA GRAPEFRUIT
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The allocation problem of sending grapefruit to packinghouses versus processing plants is considered in this paper. The authors examine on-tree grower prices reported by the USDA for fresh and processed grapefruit and report that these prices do not reflect the alternative returns necessary for this allocation decision. The USDA processed on-tree price is a weighted average of returns for fruit that is intended for processing and fruit that is not intended for processing while the USDA fresh on-tree price is for fruit that is only intended for the fresh market.