Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 17 ISSUE 3
Written by Agatha POPESCU

The paper aimed to analyze the elasticity of apple price in close relationship to apple output in Romania based on the empirical data provided by the National Institute of Statistics for the period 2007-2015. Apple price increased by 19.7 % from Lei 2,230 per ton in 2007 to Lei 2,670 per ton in 2016, while apple production declined by 1.8 % from 475.4 thousand tons in 2007 to 467.3 thousand tons in 2016. The elasticity was determine in two variants:(V1) the year 2007 being term of reference, and V2, all the years were considered term of reference one by one. The coefficients of elasticity showed that apple production has a deep impact of apple price. In case of V1, in six years ( 2008, 2010, 2012, 2013, 2014, and 2015), the apple price was very elastic, while in two years ( 2009 and 2011), it was relatively elastic in relation to the change in apple production. In case of V2, in three years ( 2008, 2011 and 2014), the apple price was very elastic, in other three years ( 2010, 2013 and 2015), it was relatively elastic, in one year ( 2009), it looked to be unitary and in one year( 2012), it looked to move to perfect inelastic. All these results, confirmed the H0 hypothesis that the variation of apple production leads to apple price volatility. As a consequence, apple tree growers must create associations which are the only chance to reduce the expenses for farm inputs, to increase apple production and quality, to keep under control production cost, to store the production for a longer period of time to protect it against hail and degradation, to preserve it in the best conditions and to deliver it in the market at a higher price in the periods when the offer will be lower. In this way, they apple production will have a better impact on price and farmers could get a higher profit.

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