Price and Quality Relationships in Pistachio Market in Kerman

Pistachio is a product with wide range of quality. Therefore, it is necessary to investigate the relationship between price and quality. In this study, using a sample of 110 farmers and 119 pistachio traders, the relation between pistachio quality and pricing was investigated in Kerman province. Data were collected from a sample of 110 farmers and 119 traders using stratified random sampling method. Hedonic pricing method was used for estimating price model. Also, to measure the effects of socio economic factors on difference between simulated and real selling prices, Pearson correlation and variance analysis methods were used. The results showed that splitted oohadi variety with 30-32 pieces per ounce was the best choice as basic sample for pistachio pricing. Also, Hedonic model showed that among 12 quality factors, only two (percent of splitting and ounce) were significant. Insignificant factors could be divided into three groups. The first group was measurable with high costs. The second was easily measurable but not perfectly recognized by the market. The third group could be measured visually. The results of study showed that selling price received by pistachio producers was relatively low due to weak relationship between price and quality.