Analysis of Marketing Level Weekly Prices for Selected
Fresh Fruits
Hyunok Lee*, Daniel Sumner**, and Jessica Vergati***
June 2012
This research was funded by Specialty Crop Block Grant Program (SCBGP)
California Department of Food & Agriculture (CDFA) Specialty Crop Block Grant
CFDA# 10.170, “Measuring and Understanding the Pattern of Margins between Farm and
Retail Prices for California Specialty Crops to Increase Growers Returns”
*Department of Agricultural and Resource Economics, University of California, Davis
**Department of Agricultural and Resource Economics, University of California, Davis and
Agricultural Issues Center, University of California
***Agricultural Issues Center, University of California
1
Goals:
Agricultural products are linked from farms to consumers through food marketing systems such
as food manufacturing, wholesaling, and retailing. At each level of marketing system, the cost of
marketing services are added, such as transportation, processing, packaging, distribution of farm
products and marketers’ margin. This part of research examines how the prices at each
marketing level relate to each other and how the margin between market levels may change over
time.
Data:
From the most disaggregated data (weekly level), we standardized the quality of products—
specific to a variety, size of fruit, grade, and container (when available) at all marketing levels so
that we can focus on price differences caused only by marketing margins.

To develop the retail and farm price data that include the least amount of market inputs
other than raw inputs (e.g., transportation costs), we used the prices of the producing region (we
designated a representative producing region in the country and collected both farm and retail
prices of that region).

At each marketing channel, we collected the prices of the products that have the most
uniform quality (or grade) at all marketing channels. Given the perishable quality of fresh fruit,
our data consist of weekly prices for the period spanning from 2007 to 2011 (or 2012).
Data source and data description:
Weekly data at the retail, terminal (wholesale) and shipping point levels are obtained from
Agricultural Market News, which is published by Agricultural Marketing Services, USDA.
Agricultural Market News reports publish daily, weekly and seasonal price aggregates for the
shipping point (or FOB), terminal (or wholesale) and retail markets. The prices at the shipping
point were provided in most detail, classified by product variety, size, grade, container, and
districts where products originated. Terminal prices also include this product/container
information for each terminal market location. Retail prices were reported in less detail; they are
classified by variety, size (depending on the fruit), and broadly defined region. Our weekly data
2
at shipping point and terminal levels are available from 1998, but retail prices are available only
from 2007.
Fresh apples:

Data period: from Oct. 5, 2007 to Sept. 23, 2011

Variety: red delicious

Unit: $/pound

Other details:
o Retail prices: region=Northwest U.S.
o Terminal prices: region=Seattle, grade=WaExFcy, product origin=Washington,
size=88s or mid-range, package=carton tray pack
o Shipping point prices: region=Washington state, other specifications are the same
as those reported in the terminal market
Fresh peaches

Data period: from 5/19/2007 to 2/10/2012

Variety: “various yellow flesh available”

Unit: $/lb

Other details:
o Retail prices: region=Northwest U.S.
o Terminal prices: region=Los Angeles, size=42s, package=carton 2-layer tray pack
o Shipping point prices: region=Central and Southern San Joaquin Valley
California, size=40-42s, “preconditioned”
Table grapes

Data period: from 10/5/2007 to 12/23/2011

Variety: red/white seedless

Unit: $/pound

Other details:
o Retail prices: region=Northwest U.S.
3
o Terminal prices: region=Los Angeles, variety=Thompson seedless, size=large,
product origin=California and imports, package=all containers
o Shipping point prices: regions=Coachella Valley and Chile imports
Fresh strawberries

Data period: from 1/6/2007 to 2/17/2012

Unit: $/lb

Other details:
o Retail prices: region=Northwest U.S.
o Terminal prices: region=Los Angeles, size=medium to large, origin=Oxnard and
Salinas–Watsonville, package=flats 12-pt baskets
o Shipping point prices: region=Oxnard and Salinas–Watsonville, and other
specifics are the same as reported in terminal market
Fresh (Navel) oranges

Data period: from 11/12/2010 to 2/10/2012

Unit: $/lb

Other details:
o Retail prices: AMS retail data are sparse. Prior to 11/12/2010, they are reported
on a per orange basis.
o Terminal prices: region=Los Angeles, variety=Navel with no subvariety,
grade=Shprs1, size=88s, origin=California, package=7/10 bushel cartons
o Shipping point prices: region=Central & Southern California and Arizona, other
specifics are the same as reported in terminal market.
Price patterns at the vertically coordinated markets:
The graphs below depict the weekly prices of three supplying channels for each of five fruits, for
several recent years (price lines are discontinuous because prices during the off-season were not
available). Graphical presentations are provided below.
4
Weekly prices of fresh apples
1.8
$/lb at retail
$/lb at terminal
$/lb at shipping point
10 per. Mov. Avg. ($/lb at retail)
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
10/5/07
2/5/08
6/5/08
10/5/08
2/5/09
6/5/09
10/5/09
2/5/10
6/5/10
10/5/10
2/5/11
6/5/11
10/5/11
2/5/12
5
Weekly prices of fresh peaches
4.5
$/lb at retail
$/lb at terminal
$/lb at shipping point
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
12/7/07
4/7/08
8/7/08
12/7/08
4/7/09
8/7/09
12/7/09
4/7/10
8/7/10
12/7/10
4/7/11
8/7/11
12/7/11
6
Weekly prices of table grapes
3.5
$/lb at retail
$/lb at shipping point
$/lb at terminal
8 per. Mov. Avg. ($/lb at retail)
3.0
2.5
2.0
1.5
1.0
0.5
0.0
10/5/07
2/5/08
6/5/08
10/5/08
2/5/09
6/5/09
10/5/09
2/5/10
6/5/10
10/5/10
2/5/11
6/5/11
10/5/11
2/5/12
7
Weekly prices of fresh strawberries
6.0
$/lb at retail
$/lb at terminal
$/lb at shipping point
5 per. Mov. Avg. ($/lb at retail)
5.0
4.0
3.0
2.0
1.0
0.0
10/5/07
2/5/08
6/5/08
10/5/08
2/5/09
6/5/09
10/5/09
2/5/10
6/5/10
10/5/10
2/5/11
6/5/11
10/5/11
2/5/12
8
Weekly prices of fresh oranges
2.0
$/lb at retail
$/lb at terminal
$/lb at shipping point
5 per. Mov. Avg. ($/lb at retail)
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
9
The following observations stand out from the above graphs:

In general, retail prices show much more weekly fluctuation than FOB and terminal
prices.

FOB and terminal prices are much more stable, with less fluctuation for apples and
oranges than more perishable fruits such as peaches, table grapes and strawberries.

The wider fluctuation of retail prices imply that, in addition to the product purchase price
paid by the retailer, there are many other factors that are critical in determining the retail
price.

While shipping and terminal prices are closely correlated, the correlation of retail prices
with shipping and terminal prices is much weaker on a weekly basis.

Seasonal highs and lows are clear for FOB and terminal prices, but less so for retail
prices.

Nevertheless, the correlation of retail prices with shipping point and terminal prices
seems to exist for the longer-term moving average retail prices.

This indicates that retailers price their products (fresh fruits) over a relatively long
horizon even for a perishable product such as fresh fruit.

Reported strawberry prices are often higher at the terminal level than at the shipping
point level, suggesting that fruit and contract characteristics may not be the same in these
markets.
10