Hedonic pricing model for ultra-high-temperature milk market in Juiz de Fora – Brazil

Weslem Rodrigues Faria (), Glauco Rodrigues Carvalho (), Juliana Mota Monteiro da Silva () and Guilherme Fonseca Travassos ()
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Weslem Rodrigues Faria: Universidade Federal de Juiz de Fora (UFJF)
Glauco Rodrigues Carvalho: Empresa Brasileira de Pesquisa Agropecuária (Embrapa)
Juliana Mota Monteiro da Silva: Universidade de São Paulo (ESALQ/USP)
Guilherme Fonseca Travassos: University of Illinois at Urbana-Champaign (UIUC)

Revista Brasileira de Estudos Regionais e Urbanos, 2025, vol. 19, issue 1, 41-67

Abstract: The dairy industry stands as one of the most significant sectors within the Brazilian food industry. Ultra-high-temperature (UHT) milk has notably expanded its market presence in terms of fluid milk sales. Moreover, UHT milk is available in various options, including varying fat content, added nutrients, and diverse packaging. This study aims to estimate a hedonic price model for UHT milk in the Juiz de Fora market, Brazil, with a focus on discerning premiums associated with packaging characteristics, the presence of added nutrients, fat content, supermarket chains, and location. Data for the year 2016, collected from all supermarkets in the municipality, were used. The most robust model revealed a price premium over the baseline product, with increments of +0.44 R$/liter (+12.31%) for the screw cap, +2.38 R$/liter (+51.88%) for iron,+0.89 R$/liter (+21.06%) for calcium, +2.10 R$/liter (+46.28%) for the Lactose-free attribute, and +0.27 R$/liter (+7.22%) for semi-skimmed milk. These findings hold significant implications for the dairy industry, guiding product portfolio strategies, market share considerations, andprofitability assessments.

Keywords: UHT milk; Milk fat content; Hedonic price model (search for similar items in EconPapers)
JEL-codes: L11 Q11 (search for similar items in EconPapers)
Date: 2025
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