An hedonic evaluation of the impacts of vertical coordination on business performance amongst apple producers in Morocco

We present an econometric analysis of the marketing of apples in Morocco that investigates the relationship between vertical coordination arrangements and the prices of apples for farmers. In this study, the hedonic method is used to evaluate the vertical coordination of apple fruit chains by analyzing the marginal implicit price of different product characteristics. We examine the variables influencing apple prices for farmers, comprising intrinsic factors related to the farm's characteristics and quality attributes such as fruit variety and fruit diameter. Additionally, we consider extrinsic variables associated with marketing factors, including vertical coordination systems, payment terms, seasonality of sale, cold storage, and geographical origin. Based on a nationally representative survey of 190 apple growers in the southeast of Morocco, an empirical analysis is conducted. Results highlight the pivotal role of apple growers' experience in elevating farm-level prices, indicating a deeper understanding of market dynamics. Significant price variations are tied to quality attributes, notably a 19.2% premium for larger apples (75-85 mm diameter), indicating market preference. The economic analysis underscores the influence of apple varieties, with Golden commanding a 16.4% higher price, indicating heightened consumer demand. Additionally, the study found that marketing factors, vertical coordination models, payment terms, seasonality of sale, cold storage, and geographical origin also have a positive impact on apple prices. Furthermore, vertical coordination models positively impact apple and prices provide producers with guidance for effective supply chain coordination. These insights, extending beyond theory, serve as a roadmap for policymakers to support the agricultural sector. Equipped with knowledge of business performance, farmers can implement targeted measures to enhance the marketing value of their agricultural products, fostering resilience and profitability in the Moroccan apple sector.