The Influence of the Internal Quality Grading on the Fruit Prices : A Case Study of the Introduction of Optical Sensors in Agricultural Cooperatives

Abstract

In recent years, optical sensors which can measure internal quality, such as sugar content, have spread quickly throughout fruit shipper's unions. With this, the influence of optical sensors on fruit prices has become an important question. This paper clarifies the influence of optical sensors on fruit prices through a case study of the first agricultural cooperative to introduce optical sensors and start sugar content grading on peaches. With the introduction of sugar grading, there was a high price boost effect for the agricultural cooperative. However, overall prices of peaches have been declining after the mid-1990s, meaning the price boost effect of sugar content grading has been reduced. After the mid-1990s, many fruit shipper's unions introduced optical sensors and started sugar content grading, meaning that the supply capacity of the high-class fruit possessing high sugar content, which had been the main factor of the high price boost, has become excessive. In response, the case study agricultural cooperative has tried to ship peaches in various package forms in order to create alternative demand for high-class fruit. As the spread of optical sensors through the industry has made it possible to ship based on internal quality for fruits for all shipper's unions, it is essential for the unions to achieve higher marketing capability than previously necessary.