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Market trends and consumer demand for fresh berries

Author

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  • Sobekova, Kristina
  • Thomsen, Michael R.
  • Ahrendsen, Bruce L.

Abstract

We present an analysis of markets for fresh strawberries, blueberries, blackberries and raspberries in the United States during 2008–2011. We use weekly panel data covering supermarket purchases in 52 cities. The primary goal is to estimate demand elasticities for fresh berries and thereby provide a better understanding of consumer behaviour in response to price changes and the nature of competition among these crops. We estimate fixed and random effects models for double log demand equations and a complete demand system, the Almost Ideal Demand System. The latter specification can be used to estimate demand relationships that conform to utility maximising behaviour. The elasticity estimates are very robust across the different specifications and estimation methods. This increases confidence in our findings and provides some assurance that choice of functional form or estimation method is not driving our results. We find that retail demands for all berry crops are in the elastic range and that the different berries are substitutes for one another. The demand for strawberries was the least elastic with an own price elasticity of –1.26 and blackberries were the most elastic with a demand elasticity of –1.88. Blackberry demand was also the most responsive to the prices of competing berry crops. The study provides clearer insight into markets for berries in the United States. In addition, it fills a gap in the present lack of up-to-date consumer demand elasticities for these crops and will be useful for growers, decision makers and consumers.

Suggested Citation

  • Sobekova, Kristina & Thomsen, Michael R. & Ahrendsen, Bruce L., 2013. "Market trends and consumer demand for fresh berries," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 7(2-3), pages 1-4.
    • Handle: RePEc:ags:apstra:164771
    DOI: 10.22004/ag.econ.164771
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    References listed on IDEAS

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    1. Cook, Roberta L., 2011. "Fundamental Forces Affecting The U.S. Fresh Berry And Lettuce/Leafy Green Subsectors," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 26(4), pages 1-5.
    2. Richard Green & Julian M. Alston, 1990. "Elasticities in AIDS Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 442-445.
    3. Lin, Biing-Hwan & Variyam, Jayachandran N. & Allshouse, Jane E. & Cromartie, John, 2003. "Food And Agricultural Commodity Consumption In The United States: Looking Ahead To 2020," Agricultural Economic Reports 33959, United States Department of Agriculture, Economic Research Service.
    4. Wyatt Thompson, 2004. "Using Elasticities from an Almost Ideal Demand System? Watch Out for Group Expenditure!," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1108-1116.
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    Cited by:

    1. Arnade, Carlos & Kuchler, Fred, 2015. "Measuring the Impacts of Off-Season Berry Imports," Economic Research Report 229201, United States Department of Agriculture, Economic Research Service.
    2. Lippert, Christian & Feuerbacher, Arndt & Narjes, Manuel, 2021. "Revisiting the economic valuation of agricultural losses due to large-scale changes in pollinator populations," Ecological Economics, Elsevier, vol. 180(C).
    3. Vincenzo Girgenti & Stefano Massaglia & Angela Mosso & Cristiana Peano & Filippo Brun, 2016. "Exploring Perceptions of Raspberries and Blueberries by Italian Consumers," Sustainability, MDPI, vol. 8(10), pages 1-16, October.

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