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A Hedonic Analysis on the Implicit Values of Fresh Tomatoes

Author

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  • Huang, Chung L.
  • Lin, Biing-Hwan

Abstract

The food habits and dietary patterns of American consumers are changing and they are increasingly demanding food products that possess certain attributes relating to how the food was produced or processed. The objectives of the study are to analyze household purchase of fresh tomatoes and to determine the magnitudes of the price premium paid for the organic tomatoes by estimating a hedonic price model. The study uses the 2003 ACNielsen Homescan panel data. The data set represents a nationally representative panel of U.S. households, which provide food purchase data for at-home consumption. For empirical implementation, parameters of the hedonic model were estimated using the Box-Cox transformation procedure. The results indicated that consumers value the organic and packaging attributes positively and consistently among the major markets. The study found that the organic feature contributes $0.41/lb to the price of fresh tomatoes that consumers paid in the Northeast market. For other markets, the organic premiums were estimated to be $0.38/lb in the North Central and $0.26/lb in the Southeast and West. Furthermore, the results suggest that tomato prices vary by household characteristics, including income and age, education, and race and ethnicity of household head.

Suggested Citation

  • Huang, Chung L. & Lin, Biing-Hwan, 2006. "A Hedonic Analysis on the Implicit Values of Fresh Tomatoes," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25404, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25404
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    File URL: http://purl.umn.edu/25404
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    References listed on IDEAS

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    1. Huang, Chung L., 1991. "Organic Foods Attract Consumers for the Wrong Reasons," Choices, Agricultural and Applied Economics Association, vol. 6(3).
    2. Gary D. Thompson & Julia Kidwell, 1998. "Explaining the Choice of Organic Produce: Cosmetic Defects, Prices, and Consumer Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 277-287.
    3. Boland, Michael & Schroeder, Ted, 2002. "Marginal Value of Quality Attributes for Natural and Organic Beef," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(01), pages 39-49, April.
    4. Maguire, Kelly B. & Owens, Nicole N. & Simon, Nathalie B., 2004. "The Price Premium for Organic Babyfood: A Hedonic Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
    5. Bodo E. Steiner, 2004. "Australian wines in the British wine market: A hedonic price analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 287-307.
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    Cited by:

    1. Curtis, Kynda R. & Yeager, Irvin & Black, Brent & Drost, Daniel & Ward, Ruby, 2014. "Market and Pricing Potential for Extended Season Fresh Produce Sales: An Intermountain West Example," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), July.

    More about this item

    Keywords

    Box-Cox transformation; fresh tomatoes; hedonic price; organic produce; product attributes; Crop Production/Industries; D1; Q11;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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