University of Kentucky

HortBiz Home Mission Publications Markets / Direct Marketing Organics In Kentucky General Industry Edamame Soybean Marketing Project KY Produce Industry Surveys       Highlights From 2001/02 Kentucky Produce Marketing Surveys       2001 Kentucky Produce Marketing Practices Survey: Inital Data Summary       2001 Kentucky Produce Marketing Practices Survey: Inital Data Summary - Question 3       Kentucky Produce Marketing Practices Survey (the questions)       Kentucky Blueberry Market survey       Edmonton CB Foods Summary       Lexington Farmer's Market Blueberry Market Survey Summary Agricultural Economics Horticulture College of Agriculture New Crop Opportunities Center For additional information about this project, please contact Matt Ernst or Tim Woods. University of Kentucky Department of Agricultural Economics 400 Charles E. Barnhart Bldg. Lexington, KY 40546-0276 Phone: 859-257-5762 Fax: 859-323-1913 Last Update: January 8, 2004

How much is too much to pay for a pint of Kentucky-grown blueberries? How much would people be willing to pay for U-Pick berries? Are quart-size containers a viable way to market blueberries? According to a study funded by the New Crop Opportunities Center this summer, consumers in both big and small Kentucky towns are willing to pay top prices for fresh Kentucky blueberries. Farmers’ Market and Grocery A survey of blueberry buyers was conducted during the first two weeks of Kentucky’s blueberry season to determine blueberry buyer preferences. Most of the surveys (102) were collected at the Lexington Farmers’ Market. There were also 25 surveys collected in Metcalfe County, at the “Blueberry Festival” promotion featuring locally grown blueberries at the Edmonton CB Foods grocery store. The survey took less than two minutes to complete. It included questions about how much consumers were willing to pay that day for retail blueberries, what blueberries were being used for, and how much customers would be willing to pay for U-Pick blueberries. Market Differences Consumers at the Farmers’ Market were used to paying $3.00 per pint for fresh blueberries. According to the survey, Lexington Farmers’ Market customers would be willing to pay an average of $3.14 per pint of blueberries in season. Most people responding to the survey at the farmers’ market, though, indicated that they were willing to pay whatever the market price was. In Metcalfe County, some 150 miles southwest of Lexington, CB Foods featured local, hand-picked blueberries for $1.88 per pint. The consumers surveyed there during one Saturday of shopping indicated that they would be willing to pay, on average, $2.08 per pint for blueberries. Wholesale prices for local berries at both these outlets were well within the $1.25 - $2.00 range Kentucky blueberry farmers are receiving this year. UK estimates show that blueberry growers can make adequate profits from blueberry production at such wholesale price levels. Those growers willing to market their own berries at “premium” markets (like the farmers’ market) can expect to generate significantly greater profits from their efforts. U-Pick Shows Promise Producers willing to tailor their production for U-Pick markets can often capture higher profits than wholesale producers. This is because U-Pick eliminates labor costs, the largest cost for wholesale blueberry production. In fact, according to university estimates, those willing to develop a U-Pick blueberry market in their area can make $800 to $1,500 more per acre over wholesale berry production when charging a price of $1.25 per pint. The survey indicated that about half the consumers at both markets would be interested in picking their own berries at a nearby farm. Lexington Farmers’ Market customers said that they would pay an average of $2.13 per pint for berries that they picked themselves. Those surveyed at the grocery indicated that they would be willing to pay considerably less, $1.24 per pint, for U-Pick blueberries. Interestingly, some of those surveyed at the Farmers’ Market indicated that they would be willing to pay more than they were paying at the market just to go to a farm and pick their own berries. Enterprising farmers willing to provide a hospitable and fun environment for U-Pick berry customers could cash in on the public’s taste for these berries.

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