UC Davis Agricultural and Resource Economics

Sarah Jansen, Pontifical Catholic University of Chile, Santiago

Hedonic Price Analysis of Fresh Chilean Cherry Exports to China

Date and Location

Wednesday, August 17, 2022, 12:30 PM - 2:00 PM
ARE Conference Room, 2102 Social Sciences and Humanities


Recently the Chilean cherry industry has evolved to be the southern hemisphere’s main grower and exporter of the fruit. Cherry prices in international markets, and consequently the returns to both grower and intermediaries, are sensitive to fruit characteristics and the timing of shipping. Although the Chilean industry has been able to take advantage of the country’s growing conditions and counter seasonality, the links between prices and cherry attributes are not clearly understood. This study uses a hedonic price approach to examine the influence of fruit attributes, shipping dates, and marketing strategies on prices received in the most important export destination for Chilean cherries, China. Fruit size category explains price variation, larger fruit is associated with higher prices ranging from US$ 3.8/kg to US$ 8.3/kg, ceteris paribus. Dark cherries are sold for approximately US$6.5/kg, ceteris paribus, while light cherries are sold at US$ 5.7/kg, ceteris paribus. Timing of export shipments is important with a clear premium on early-season fruit and evidence that shipments of approximately one month before the Chinese New Year obtain higher prices. The results are robust to the incorporation of marketing strategies in the analysis. The results provide insights to industry participants as well as information to agronomists and horticultural experts charged with improving the profitability of the industry through alteration of characteristics of the fruit and production methods.

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