SOUTHERN JOURNAL OF AGRICULTURAL ECONOMICS JULY, 1981 REGIONAL MARKETS FOR AGRICULTURAL AND FOOD PRODUCTS: NEEDED RESEARCH

Implicit in the subject of regional markets is progress as a result of deregulation in the airline the inference that they deserve more attention in industry. research than they have been given in recent Inflation and price instability are two other im-years. Based in large part on cheap energy for portant forces that could affect regional markets. transportation and production, the economy has Adjusting relative prices through inflation usu-reflected increased regional specialization in ally is accompanied by very high interest rates. production for a national (or international) mar- Adjustments to the high rates would appear to ket. Concurrently, there has been a disinter- favor the large firms with access to capital mar-mediation of many of the regional differences in kets and an ability to pass through the higher consumer wants and preferences because of the costs. Price instability coming primarily from the increased mobility of the population and the ex- export sector would also represent large costs, posure of all persons to the same mass communi- which could be managed more successfully by cations material. These factors have contributed the large firms with access to capital and futures to an emphasis on the national market, in con- markets. Concentration of production and mar-trast to the regional market in both research and keting into fewer firms could affect regiona