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Local Premium or Local Discount: The Case of Packaged Fresh Tomatoes in Hawaii

Author

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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, Southern Agricultural Economics Association, vol. 47(3), June.
    • Handle: RePEc:ags:joaaec:349012
    DOI: 10.22004/ag.econ.349012
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    References listed on IDEAS

    as
    1. Martinez, Stephen W. & Hand, Michael S. & Da Pra, Michelle & Pollack, Susan L. & Ralston, Katherine L. & Smith, Travis A. & Vogel, Stephen J. & Clark, Shellye & Lohr, Luanne & Low, Sarah A. & Newman, , 2010. "Local Food Systems: Concepts, Impacts, and Issues," Economic Research Report 96635, United States Department of Agriculture, Economic Research Service.
      • Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
    2. Low, Sarah A. & Vogel, Stephen J., 2011. "Direct and Intermediated Marketing of Local Foods in the United States," Economic Research Report 118025, United States Department of Agriculture, Economic Research Service.
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