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Local Premium Or Local Discount: The Case Of Packaged Fresh Tomatoes In Hawaii

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  • XU, XUN
  • KEAHIOLALO, KRISTOPHER
  • LOKE, MATTHEW K.
  • LEUNG, PINGSUN

Abstract

This article utilizes the 2011 Nielsen scanner data for the Honolulu fresh tomato market to explore the existence of price premium for local food. Hedonic analysis is conducted to delineate the price impact of the local attribute. Contrary to the widely perceived local price premium in the consumer preference literature, mixed results of price premiums and discounts are discovered for local tomato products. Additional investigation suggests that the prices of local tomatoes are likely influenced by seasonal output fluctuation. The limited market distribution capacity facing local producers may have contributed further to the retail discounting.

Suggested Citation

  • Xu, Xun & Keahiolalo, Kristopher & Loke, Matthew K. & Leung, Pingsun, 2015. "Local Premium Or Local Discount: The Case Of Packaged Fresh Tomatoes In Hawaii," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 47(3), pages 345-358, August.
    • Handle: RePEc:cup:jagaec:v:47:y:2015:i:03:p:345-358_00
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    Cited by:

    1. Fang, Xin & Huang, Hui & Leung, PingSun, 2018. "Competitiveness of local food: an empirical analysis of the tomato market dynamics," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(1).
    2. Yiwen Yang & PingSun Leung & Chu‐wei Tseng, 2022. "Price premium or price discount for locally produced food products? A 5W1H approach in meta‐analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2261-2274, September.

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