The price of almonds has risen quite dramatically in the last few years. How much is any of that a little bit due to the, to this effect? I would guess that the cost of almonds in a can of consumer almonds purchased at the store is 50% say. So now you got 50% of what consumers buy is the actual almonds and five percent of almonds are pollination fees.
Wally Thurman of North Carolina State University and PERC talks with EconTalk host Russ Roberts about the world of bees, beekeepers, and the market for pollination. Thurman describes how farmers hire beekeepers to pollinate their crops and how that market keeps improving crop yields and producing honey. Thurman then discusses how beekeepers have responded to Colony Collapse Disorder--a not fully understood phenomenon where colonies disband, dramatically reducing the number of bees. The discussion closes with the history of bee pollination as an example of a reciprocal externality and how Coase's insight helps understand how the pollination market works.