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Hedonic pricing model for ultra-high-temperature milk market in Juiz de Fora – Brazil

Author

Listed:
  • Faria, Weslem Rodrigues

    (Universidade Federal de Juiz de Fora (UFJF))

  • Carvalho, Glauco Rodrigues

    (Empresa Brasileira de Pesquisa Agropecuária (Embrapa))

  • da Silva, Juliana Mota Monteiro

    (Universidade de São Paulo (ESALQ/USP))

  • Travassos, Guilherme Fonseca

    (University of Illinois at Urbana-Champaign (UIUC))

Abstract

The dairy industry stands as one of the most significant sectors within the Brazilian food industry. Ultra-high-temperature (UHT) milk has notably expanded its market presence in terms of fluid milk sales. Moreover, UHT milk is available in various options, including varying fat content, added nutrients, and diverse packaging. This study aims to estimate a hedonic price model for UHT milk in the Juiz de Fora market, Brazil, with a focus on discerning premiums associated with packaging characteristics, the presence of added nutrients, fat content, supermarket chains, and location. Data for the year 2016, collected from all supermarkets in the municipality, were used. The most robust model revealed a price premium over the baseline product, with increments of +0.44 R$/liter (+12.31%) for the screw cap, +2.38 R$/liter (+51.88%) for iron,+0.89 R$/liter (+21.06%) for calcium, +2.10 R$/liter (+46.28%) for the Lactose-free attribute, and +0.27 R$/liter (+7.22%) for semi-skimmed milk. These findings hold significant implications for the dairy industry, guiding product portfolio strategies, market share considerations, andprofitability assessments.

Suggested Citation

  • Faria, Weslem Rodrigues & Carvalho, Glauco Rodrigues & da Silva, Juliana Mota Monteiro & Travassos, Guilherme Fonseca, 2025. "Hedonic pricing model for ultra-high-temperature milk market in Juiz de Fora – Brazil," Revista Brasileira de Estudos Regionais e Urbanos, Associação Brasileira de Estudos Regionais e Urbanos (ABER), vol. 19(1), pages 41-67.
    • Handle: RePEc:ris:rberur:0232
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    More about this item

    Keywords

    UHT milk; Milk fat content; Hedonic price model;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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