THE IMPACT OF TRANSPORTATION ON THE GROWTH OF TH

THE IMPACT OF TRANSPORTATION ON THE GROWTH

OF THE CALIFORNIA STRAWBERRY INDUSTRY:

Agriculture accounts for 10 percent of the state domestic product in California (Strawberries and circuit boards, 1993, p. A30). Strawberry production is a major component of California agriculture, with annual production exceeding one billion pounds (McClure, 1992, pp. 23, 102). Strawberry production in California, however, remains largely a labor intensive crop (Strawberries and circuit boards, 1993, p. A30). Because of this production characteristic, the industry remains dependent on migrant and imported labor, and labor costs constitute a major uncertainty for producers. Nevertheless, over the past 20 years, growth in the shipping volume of strawberries has exceed that of all other California agricultural products (United States Department of Agriculture, 1994, pp. 198-205).

Several factors appear to have contributed to the ability of the California industry to record significant growth in the face of increasing labor problems. Among the more significant of these factors are the use of air transportation, improved shipping methods for the surface transportation of fresh strawberries, and production and storage innovations that have made the shipping of fresh strawberries as 12-month per year business in California (Tirshcwell, 1993, p. 9A; Illingsworth, 1992, pp. 6B-7B; McClure, 1988, pp. 77-78; Crawford, 1987, p. 511). The pro

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995-2004 period. Related Literature A preliminary review of the literature relevant to the problem to be investigated is presented in this section. Literature is reviewed in relation to production, technology, transportation, labor, and free trade. Production Strawberry production in California in 1982 exceeded 534 million pounds (Bureau of the Census, 1988, p. 395). By 1987, production of strawberries in California had grown to more than 725 million pounds. By 1993, production exceeded one billion pounds of strawberries in California (McLain, 1994, p. B1). California growers hold an 80 percent market share of the fresh strawberry market in North America (McClure, 1992, pp. 23, 102). Technology A major technological innovation contributing to the growth of the strawberry industry in California was the development of a genetically-altered bacteria designed to retard the formation of frost on the fruit (Crawford, 1987, p. 511). Although the use of this biotechnology was opposed by consumer activists, the challenge was dismissed by a California superior court. Improved storage technologies also have contributed to the ability of the industry to operate on a year-around basis (Pszczola, 1994, pp. 128-130). The ability to

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