Fruit and Vegetable Quality

CHAPTER 12

Economics of Quality

WOJCIECH J. FLORKOWSKI

A CONSENSUS about what is quality seems elusive. The lack of a uni-
versal definition signals the complexity of the issue and the variety of
perspectives that exist. Because quality evolves with changing technol-
ogy, markets, industry structure, and consumer preferences, a single, all-
encompassing definition applicable over an extended period can
incorporate only common elements.
Hill (1996) offers a broad definition that meet these criteria, stating
that quality is a composite attribute of the products that have economic
or aesthetic value to the user. This definition represents a consensus of
task force members deliberating quality of 12 groups of agricultural
products. Markets reward quality and instantly transmit market signals
between buyers and producers. Shewfelt et al. (1997) review definitions
of quality for a specific group of users—retail consumers. Their defin-
ition reflects the importance of consumer expectations and the anticipa-
tion of changing preferences.
The broad quality definition offered by Hill and the narrow defini-
tion developed by Shewfelt reflect the ability of markets to measure qual-
ity, rewarding the best and discounting the worst. The interpretation of
quality has consequences for empirical research in economics, market-

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Paper prepared for presentation at the International Conference “An Integrated View
of Fruit and Vegetable Quality,” Potsdam, Brandenburg/Germany, May 10–May
15, 1997.