The U.S. Sweet Potato Market: Price Response and Impact of Supply Shocks

Abstract

Sweet potatoes have become increasingly popular among consumers due to their health benefits, and, as a result, sweet potato production has been growing rapidly over the last decade in the United States. However, the industry is facing major challenges, including the risk of disease outbreaks and adverse weather events, which could potentially have a significant impact on the market. However, the economic literature on the sweet potato commodity is limited. This study models the U.S. sweet potato market price response to supply changes and derives elasticity estimates. This information is essential for understanding the sweet potato market and for simulating the impacts of potential supply shocks, given the challenges that the industry is facing. We found that prices are highly sensitive to supply. North Carolina, the largest sweet potato producer in the country, dominates the domestic market and exerts significantly larger influences on market prices than other producing states.

Keywords

• sweet potato market
• price response
• elasticity
• synthetic inverse demand system