LOCAL PREMIUM OR LOCAL DISCOUNT: THE CASE OF PACKAGED FRESH TOMATOES IN HAWAII

Xun Xu, Kristopher Keahiolalo, Matthew K. Loke and Pingsun Leung

Journal of Agricultural and Applied Economics, 2015, vol. 47, issue 3, 345-358

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.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jagaec:v:47:y:2015:i:03:p:345-358_00

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