Hedonic analysis of ultra-high-temperature-treated milk prices in Italy

Francesco Bimbo*, Alessandro Bonanno, Xuan Liu, Rosaria Viscecchia

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

31 Citations (Scopus)

Abstract

The Italian market for UHT milk has been growing thanks to both consumers' interest in products with an extended shelf life and to the lower prices of these products compared with refrigerated, pasteurized milk. However, because the lower prices of UHT milk can hinder producers' margins, manufacturers have introduced new versions of UHT milk products such as lactose-free options, vitamin-enriched products, and milk for infants, with the goal of differentiating their products, escaping the price competition, and gaining higher margins. In this paper, we estimated the contribution of different attributes to UHT milk prices in Italy by using a database of Italian UHT milk sales and a hedonic price model. In our analysis we considered 2 UHT milk market segments: products for infants and those for the general population. We found premiums varied with the milk's attributes as well as between the segments analyzed: n-3 fatty acids, organic, and added calcium were the most valuable product features in the general population segment, whereas in the infant segment fiber, glass packaging, and the targeting of newborns delivered the highest premiums. Finally, we present recommendations for UHT milk manufacturers.

Original languageEnglish
Pages (from-to)1095-1102
JournalJournal of Dairy Science
Volume99
Issue number2
DOIs
Publication statusPublished - 2016

Keywords

  • Hedonic price model
  • Italy
  • Ultra-high-temperature-treated milk

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