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Canadian Consumer's Willingness-To-Pay For Pesticide Free Food Products: An Ordered Probit Analysis

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Author Info

  • Cranfield, John A.L.
  • Magnusson, Erik

Abstract

A new crop production system has emerged in western Canada. Pesticide Free ProductionTM (PFPTM) emphasizes reduced pesticide use in conjunction with increased reliance on producer knowledge of agronomic practices that mitigate weed, insect and disease pressure. A contingent valuation survey was undertaken to determine if Canadian consumers would pay a premium for PFPTM food products. Over 65 percent of respondents would be willing to pay a one to ten percent premium relative to a conventional food product. Five percent of respondents would be willing to pay more than a 20 percent premium. Health and environmental concerns, willingness to switch grocery stores and youth are important characteristics of consumers who would be willing to pay higher premiums. Distribution channels geared towards health food stores (or health food centers within grocery stores) are likely targets for PFPTM food products.

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File URL: http://purl.umn.edu/34381
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Bibliographic Info

Article provided by International Food and Agribusiness Management Association (IAMA) in its journal International Food and Agribusiness Management Review.

Volume (Year): 06 (2003)
Issue (Month): 04 ()
Pages:

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Handle: RePEc:ags:ifaamr:34381

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Related research

Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

References

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  3. Stephen L. Ott, 1990. "Supermarket shoppers' pesticide concerns and willingness to purchase certified pesticide residue-free fresh produce," Agribusiness, John Wiley & Sons, Ltd., vol. 6(6), pages 593-602.
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  7. Tsu-Tan Fu & Jin-Tan Liu & James K. Hammitt, 1999. "Consumer Willingness to Pay for Low-Pesticide Fresh Produce in Taiwan," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 220-233.
  8. Arturo Estrella, 1997. "A new measure of fit for equations with dichotomous dependent variables," Research Paper 9716, Federal Reserve Bank of New York.
  9. Baker, Gregory A., 1999. "Consumer Preferences For Food Safety Attributes In Fresh Apples: Market Segments, Consumer Characteristics, And Marketing Opportunities," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
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  12. Boccaletti, Stefano & Nardella, Michele, 2000. "Consumer Willingness To Pay For Pesticide-Free Fresh Fruit And Vegetables In Italy," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 3(03).
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Cited by:
  1. Yeboah, Osei-Agyeman & Goktepe, Ipek & Naanwaab, Cephas & Kyei, Foster Ofori, 2012. "Consumers’ Willingness to Pay for Bacteriophage Technology Treated Fresh Produce," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119733, Southern Agricultural Economics Association.
  2. Owusu, Victor & Owusu Anifori, Michael, 2013. "Consumer Willingness to Pay a Premium for Organic Fruit and Vegetable in Ghana," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 16(1).
  3. Moser, Riccarda & Raffaelli, Roberta & Thilmany, Dawn D., 2011. "Consumer Preferences for Fruit and Vegetables with Credence-Based Attributes: A Review," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 14(2).
  4. Eric Giraud-Héraud & Maria Aguiar Fontes & Alexandra Seabra Pinto, 2014. "Crise sanitaires de l'alimentation et analyses comportementales," Working Papers hal-00949126, HAL.
  5. Glenk, Klaus & Hall, Clare & Liebe, Ulf & Meyerhoff, Jürgen, 2012. "Preferences of Scotch malt whisky consumers for changes in pesticide use and origin of barley," Food Policy, Elsevier, vol. 37(6), pages 719-731.
  6. Bazoche, P. & Deola, C. & Soler, Louis-Georges, 2008. "An experimental study of wine consumers’ willingness to pay for environmental characteristics," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43651, European Association of Agricultural Economists.
  7. Meroz, Yael & Morone, Andrea & Morone, Piergiuseppe, 2009. "Eliciting environmental preferences of Ghanaians in the laboratory: An incentive-compatible experiment," MPRA Paper 17107, University Library of Munich, Germany.
  8. Quagrainie, Kwamena K., 2006. "IQF Catfish Retail Pack: A Study of Consumers' Willingness to Pay," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 9(02).
  9. Muhammad Khan, Muhammad Khan, 2009. "Economic Evaluation of Health Cost of Pesticide Use: Willingness to Pay Method," MPRA Paper 30178, University Library of Munich, Germany.
  10. Owusu, Victor & Owusu, Michael Anifori, 2010. "Measuring Market Potential for Fresh Organic Fruit and Vegetable in Ghana," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95955, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
  11. Owusu, Victor, 2012. "Assessing Consumer Willingness to Pay a Premium for Organic Food Product: Evidence from Ghana," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123394, International Association of Agricultural Economists.

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