The market valuation of wheat quality characteristics

Abstract

The views expressed are those of the authors and do not necessarily represent the policies of the US Department of Agriculture or the views of other US Department of Agriculture staff members. The authors would like to thank the anonymous referee for helpful suggestions.

Sunn Pest Control Policies and Effect of Sunn Pest Damage on Wheat Quality and Price in Turkey

“…There have been a number of applications for understanding quality characteristics of agricultural commodities (Larue and Lapan, 1990;Prescott and Puttock, 1990;Uri and Hyberg, 1996;Smith, 2000). The empirical application of characteristics of goods is represented by a hedonic price function where commodity price is a function of the good and its quality characteristics.…”

Seasonal Quality Premiums for Wheat: A Case Study for Northern Germany

“…Many studies on the impact that wheat quality has on prices use hedonic (pricing) models to test the effects of quality characteristics on annual domestic or international prices (Bale & Ryan, 1977;Espinosa & Goodwin, 1991;Larue, 1991;Parcell & Stiegert, 2003;Uri & Hyberg, 1996). Bale and Ryan (1977) analyze the impact of the protein content on the price ratio between various wheat classes, and find a mainly significant positive impact.…”

“…8 Uri and Hyberg (1996) employ shipment data of U. S. wheat exports to examine grain quality factors. Although a number of factors appear to be significant, market traders do not use many of these measures.…”

“…These models assume a homogenous grain quality for all volumes marketed. In addition to the literature on optimal grain marketing, a number of papers analyze the price relationship between various qualities of grain and show significant price differences, for instance between bread and feed wheat (e.g., Bale & Ryan, 1977;Espinosa & Goodwin, 1991;Larue, 1991;Parcell & Stiegert, 2003;Uri & Hyberg, 1996). Quality characteristics such as the protein content and the falling number have significant impact on the price relationship, which may affect the production and marketing of wheat, particularly when the price relationship exhibits dynamic behavior over the marketing season.…”

Hedonic price analysis of the quality characteristics of Anatolian hard red wheat

“…Fidan (2004) found that among the quality characteristics, the hectolitre weight and vitreousness were the major factors determining the price of durum wheat in the wheat market of Turkey, whereas (Karaman et al 2009) found that the hectolitre weight and the sedimentation values were the major determinants of the price of bread wheat. Although the results of studies on this subject in the international literature differ, the protein content seems to be the common and most important characteristic quality in the determination of wheat prices (Veeman 1987;Mercier 1993;Uri and Hyberg 1996). Larue (1991) showed that the marginal implicit value of protein varied depending on the wheat classification and in time.…”