Is Wheat a Homogeneous Product?

Abstract

A hedonic approach is used to test for two kinds of product differentiation for wheat. It is shown that wheat is differentiated by end use and by country of origin. This simply recognizes the fact that buyers purchasing wheat for different purposes put different weights on quality criteria and that country‐specific factors such as weather as well as grading and inspection systems matter. The results suggest that between 1980 and 1988, wheat protein content had a significant influence on price. This influence varies over time and across wheat categories.

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