Linking intrinsic quality attributes of agricultural produce to revealed consumer preferences

• We characterise key intrinsic quality attributes of agricultural produce at harvest.
• We identify the role played by the intrinsic attributes in the vertical differentiation of retail products.
• We use demand systems modeling approach to evaluate the effect of intrinsic attributes on consumer preferences and demand across six quality different grades currently marketed in the UK.
• The findings can be used by producers, retailers and public health promoters seeking to improve farmers’ incomes, expand or maintain demand and healthy eating choices among consumers respectively.

The quality of agricultural produce, such as fruit and vegetables, is defined by grading criteria based on the assessment of primary product attributes determined at harvest. These quality measures, which characterize important end-product intrinsic attributes such as flavor and texture, are used by processors and retailers to differentiate retail products; hence they determine farm-gate and retail prices for each crop variety. Despite their importance, limited published research has systematically linked these attributes at harvest to consumer preference at retail level.In this article, we adopt a demand system, the Almost Ideal Demand Systems, to assess the effects of the intrinsic quality attributes on consumers’ purchase choices across six different quality grades that relate to 41 vegetable products sold by a leading United Kingdom (UK) retailer over a two year period. Findings suggest that consumers are both able to differentiate products based on the attributes determined at harvest and willing to pay a premium for these attributes. These findings are relevant to both industry and public health practitioners intending to maintain or expand demand for vegetables in the UK.