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Pricing of raw agricultural products by quality attributes: Case study of Concord grapes

Author

Listed:
  • R. J. Folwell

    (Department of Agricultural Economics, Washington State University)

  • V. A. McCracken

    (Department of Agricultural Economics, Washington State University)

  • J. R. Ellis

    (Department of Agricultural Economics, Washington State University)

  • S. Spayd

    (Department of Agricultural Economics, Washington State University)

  • J. Yarnell

    (Department of Agricultural Economics, Washington State University)

Abstract

Numerous fruits and vegetables are priced according to the level of one or more quality characteristics. From a grower's perspective there is a trade-off between quantity (yield) and the quality characteristics for which priced premiums are explicitly paid. This article develops a procedure to analyze such trade-offs and applies it to the situation of Concord grapes. The quality attributes included were soluble solids (sugar), pH, acid, and color. Relationships among these attributes and yield were estimated using regression procedures. The estimated coefficients were used in a separable programming model in order to impute values for the attributes.

Suggested Citation

  • R. J. Folwell & V. A. McCracken & J. R. Ellis & S. Spayd & J. Yarnell, 1990. "Pricing of raw agricultural products by quality attributes: Case study of Concord grapes," Agribusiness, John Wiley & Sons, Ltd., vol. 6(5), pages 475-488.
    • Handle: RePEc:wly:agribz:v:6:y:1990:i:5:p:475-488
    DOI: 10.1002/1520-6297(199009)6:5<475::AID-AGR2720060506>3.0.CO;2-2
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    Cited by:

    1. Olmos, Marta Fernandez & Martinez, Jorge Rosell, 2011. "The Quality-Quantity Trade-off in the Principal-Agent Framework," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), pages 1-12, January.

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