| Abstract: | This study focused on determining retail demand relationships between tablestock potatoes, frozen french fries, and potato chips. The impact upon potato utilization resulting from independent pricing decisions was also analyzed. Bi-weekly data were obtained from five Central Maine grocery stores and analyzed using multiple linear regression Sales of tablestock potatoes appeared to be influenced more by the prices of potato chips than by their own price. The reverse was true for both french fries and potato chips, as their own prices had a greater effect on sales than did prices of other products. The inter-product analysis indicated that independent pricing decisions, while increasing utilization for the market with the reduced price, might cause utilization of potatoes in other markets to decline, possibly to the extent that total utilization was reduced from the original level To reduce or prevent widespread economic injury to the potato industry, it is recommended that a coordinated marketing system be developed to guide the industry through the transition from a predominantly fresh potato market to a market dominated by processed potato products |
