Published in California State University Agricultural Research Initiative, September 1, 2001, pages 1-41. Copyright © 2001 California State University Agricultural Research Initiative. The definitive version is available at Cal Poly Agricultural Research Institute.
This study is concerned with technological choice under uncertain demand conditions. It begins with an overview of the California wild rice market. The wild rice product is described, the wild rice industry is review and wild rice market conditions are explored. The overview is followed by a discussion of wild rice processing. Technological choice and competitive strategy issues are reviewed and then a framework for choosing between two competing technologies is proposed.
The two competing technologies differ in their ability to store and process wild rice over a marketing year. The traditional technologies requires almost immediate processing of the harvested wild rice while the experimental technology allows harvested wild rice to be stored and processed over the course of the marketing year. Technological choice is explored using multiattribute utility analysis and two economic evaluations. The economic evaluations are payback period analysis and internal rate of return analysis given uncertain demand conditions. The experimental technology is shown to be the dominant technological choice under both multiattribute utility analysis and the economic analyses.
Agribusiness | Agricultural and Resource Economics | Business