considerable amount of their income on food. Consequently, it is not
surprising that variations in transaction prices are significantly deter-
mined by cryptic characteristics (see Table 3.3).
In high-income countries consumers can obtain their utility-maxi-
mizing bundle of quality characteristics by consuming a variety of prod-
ucts. Thus, for example, if a given variety of apples does not contain the
amount of vitamins required, consumers would most likely satisfy their
need by buying vitamin pills instead of asking for an apple variety hav-
ing a higher concentration of vitamins.
Given the vast supply of all different kinds of food products in high-
income countries, the dietary utility of a specific product is less impor-
tant. As expenses for food constitute only a small share of consumers’
budget, dietary needs can be fulfilled in any case. Hence the average
consumer in high-income countries is demanding utilities that go be-
yond merely the supply of nutrients. These are, for example, the health-
iness of a product, influenced by the amount of nondesired ingredients,
such as fat, calories or pesticides; a nice outer appearance; and a high
palatability of the product. Moreover, many of these characteristics are
largely influenced by management practices of production and storage
rather than breeding for the right quality.
In cases where cryptic characteristics are of economic importance,
and as well largely influenced by the genetic pattern of crops, appro-
priate quality standards and measures are necessary. These constitute the
basis for the development of selection criteria in breeding. Very suc-
cessful examples of this kind can be found within the group of products
that are typically used for processing, such as rape, sugarbeets, wheat,
barley and potatoes. In these cases the quality demanded is quite obvi-
ous as products for processing are judged by their technical performance.
Subjective perceptions of consumers, which render the definition of qual-
ity difficult, is not involved in this cases.
CONCLUSIONS
When considering the established system of production and con-
sumption of food in industrialized countries, little room is left for im-
provements of quality through breeding and selection for relevant
characteristics. Hence, neither a direct consumer survey nor the indirect
approach of the hedonic price analysis is likely to reveal quality char-
acteristics that are sufficiently relevant to consumer preferences in order
to pay off costs incurred by selecting for such traits.
Conclusions 57