Fruit and Vegetable Quality

(Greg DeLong) #1

ing, and management. The complexity of measuring quality requires the
development of a synthetic market description that is easily applicable
and clearly understood by participants. With the development of
measuring technology, we can account for minute changes in specific
external and intrinsic attributes. Information from the attribute mea-
surement does not represent equal value to the market. Markets select
and rank attributes according to supply and demand conditions. The abil-
ity to measure an attribute is unimportant, despite its presence and tech-
nical feasibility, if buyers do not recognize such attributes as contributing
toward the value of the product. In this chapter I review the dynamic
nature of fresh produce quality and its interpretation by various links in
the marketing chain. Recognizing the need for a multidisciplinary ap-
proach to quality, I stress the economic importance of the quality to fresh
produce industry. Constant industry demand for practical solutions and
recommendations is generated from empirical studies applying economic
theory and statistical methods modeling purchasing and consumption be-
havior. Each of the described approaches has its advantages and limita-
tions, but can provide unique insights about the market and consumers
to benefit research in other disciplines, public policy, investment, and
management decisions.


QUALITY DYNAMICS


The differentiation of agricultural and food products according to var-
ious quality attributes has been a recognized trade practice since the in-
ception of exchange. In response to market demand farmers supply
produce with attributes wanted by the ultimate consumer. Manufactur-
ing requirements of the processing industry pressure farmers to deliver
commodities with quality attributes that maximize processors’ profits.
Commodities with preferred attributes make the processing efficient and
yield a consistently uniform product. Bulk agricultural commodities are
particularly suited for industrial processing. Industrial food processors
purchase grains, oil seeds, and later, livestock and milk from farmers
according to their physical and chemical attributes. The presence and
the intensity of an attribute lead to classification of the supplied prod-
uct and the adoption of quality-oriented pricing. For example, attributes
subject to inspection against manufacturing requirements applied to veg-
etable crops include quality-specific measurements of potatoes such as
starch content.
Quality of vegetables and fruits destined for processing differs from


228 ECONOMICS OF QUALITY

Free download pdf