Investigating the price effects of honey quality attributes in a European country: Evidence from a hedonic price approach

Abstract

This study investigates the price effects of honey quality attributes in Spain. Price and product characteristics are collected from 264 honey labels found on the shelves of the main representative retail stores available in the national territory. The marginal effects and the implicit prices of honey characteristics are assessed through a hedonic price approach. Results show that the prices of honey are affected by leader brands sold in gourmet stores and hypermarkets in glass packages compared to producer brands sold in discounts stores and supermarkets in plastic packages. The organic production and the protected designation of origin quality labels generate positive marginal effects on the prices of honey, as well. Regarding the origin of honey, the highest relative and absolute consumer price premiums are received for honey coming from the European Union and Spain compared with blend honey coming from EU and non-EU countries. Consumer implicit prices are also influenced by mono-floral and gourmet honey with additional properties (e.g., ginseng) compared with the multifloral varieties. These findings are a useful source for a better understanding of the evolution of honey in the Spanish market. Spanish beekeepers who can differentiate their honey, may use these results as an orientation for their business strategies.