RELATION BETWEEN EGG QUALITY AND PRICE 



By Adrian H. Lindsey, Professor of Agricultural Economics, and 

 Hubert W. Yount' 



INTRODUCTION 

 The Problem 



Market information dealing with egg prices usually stresses the factors of 

 supply, such as receipts and storage holdings, while little space is given to quality. 

 The price of eggs at any given time is determined by a number of factors, among 

 which are the supply and demand factors commonly considered. For any in- 

 dividual store and in many cases for individual producers or shippers, the quality 

 of eggs placed upon the market with respect to the average quality of the grade 

 may have as much effect on price at the time of sale as the influences affecting 

 the general price level of the grade, which are supply and demand factors. 



Egg grades are based on certain external and internal characteristics which 

 have been fovmd to have an influence in determining the price among the mem- 

 bers of the wholesale trade. Attempts by the extension services of the New 

 England States to carry the idea of quality to the consumer through building 

 up consumer recognition of grades and their identifying marks such as labels 

 and trade names have failed to meet with marked success, either because con- 

 sumers as a class fail to understand the factors entering into a good grade of eggs 

 versus a bad grade, or because the factors which supervisory authorities have 

 considered in making up the grades are not the factors really considered by 

 consumers in buying eggs. No attempt has previously been made to determine 

 the relative importance of the factors entering into the several grades established 

 by state authorities. Extension specialists in approaching producers with a 

 marketing program have specified certain qualifications for eggs which may or 

 may not be the particular qualifications demanded by consumers, particularly 

 those for which the consumer is willing to pay a premium over the average price. 



As a result of these observations the study was undertaken to answer the ques- 

 tion as to what quality factors consumers were willing to pay for. It is doubtful, 

 however, whether the study completely answers this question. The method of 

 purchasing eggs from retail stores in cartons or by telephone gives the consumer 

 very little opportunity to judge whether the eggs are of sufficient quality to 

 justify the price asked. In such instances the consumer must and does depend 

 upon the retailer to deliver a dozen eggs of good quality. If she continues to 

 buy eggs from this store or continues to purchase the same grade, it may be 

 assumed that she is either ignorant of what constitutes quality, or satisfied with 

 what she has received, price considered. 



The producer, as well as the consumer, should be interested in knowing 

 whether price is a criterion of quality. The methods used in securing the data, 

 by comparing prices paid with quality of each dozen purchased, should tell 



Mr. Yount, formerly Assistant Professor of Agricultural Economics, initiated the project, di- 

 rected the collection of data, and completed some of the correlation analyses. 



