Haluk Gedikoglu

Factors affecting farmers market produce prices in Missouri

ABSTRACT Produce marketers who participate as farmers market vendors or otherwise directly market their goods should understand not only the location-related characteristics that affect consumer selection of local, fresh produce but also the product attributes that consumers prefer to find in local products. Understanding attribute-price relationships will allow marketers to better plan for value-added marketing opportunities. Using a hedonic pricing model, this study analyzed the influence that product attribute levels have on prices for seven types of produce: sweet corn, tomatoes, cantaloupe, cucumbers, green beans, bell peppers, and zucchini. Based on data collected from Missouri farmers markets, multiple attributes affect produce price variation. In the dataset, one of the strongest effects was exerted by sale location. The importance of this finding is that prices can be collected in a single location and extrapolated to other farmers market locations, which implies reduced search and reporting costs in collecting representative farmers market produce prices. Additionally, a higher weight may increase prices for some types of produce but decrease prices of others after a certain point. Farmers market vendors, as well as other direct marketers, can use attribute pricing information to identify the quality attributes that consumers prefer.