The value of apple characteristics to wholesalers in western Canada: A hedonic approach

Abstract

Sensory methods have been used to evaluate subjective apple characteristics such as juiciness, flavour, and texture. There is very little information to indicate the value wholesalers place on objective apple characteristics such as cultivar, grade, and fruit size. In this study, a hedonic price function for apples was estimated to evaluate the relationship between British Columbia (BC) apple (Malus domestica Borkh.) prices and the wholesalers’ perception of product quality characteristics. In this study, sales data and cultivar characteristics were obtained for three large wholesalers in western Canada that purchase BC fruit. Cultivar, fruit size, and grade were the most significant variables influencing apple prices. Wholesalers paid price premiums ($2.25 to $5.25 per tray) for speciality cultivars such as Gala, Fuji and Braeburn compared with traditional cultivars such as McIntosh, Red Delicious and Spartan. Large fruit size earned a price premium ($1.73 per tray) and small fruit were discounted ($2.00 per tray) compared with medium size apples. Apples graded Canada Extra Fancy (One Stripe) and BC Extra Fancy provided packing houses with price premiums ($1.50) over Canada Fancy. Apples in controlled-atmosphere (CA) storage earned price premiums ($0.96 to $1.89 per tray) in the months of January through June. Key words: Apple characteristics, wholesalers' preference, hedonic price function.