Willingness to pay for organic food in Argentina: Evidence from a consumer survey
AbstractMost food markets do not count on complete information about food quality for consumers. Quality has become a key concept in the new approaches of the Demand Theory (Lancaster, 1966; Antle, 1999), and, therefore, food quality information has turned into a crucial factor when explaining the existing differences between demand profiles. Throughout these last years, organic agriculture has undergone a notorious expansion due, among other things, to the greater interest shown by consumers aware of food safety concerns involving real or potential quality risks perceptions. (Henson, 1996) This paper aims to estimate consumers� willingness to pay (WTP) for organic food products available in the Argentinean domestic market, with a view to providing useful evidence to the government, and thus gain support in the promotion of organic production, regulation processes and labelling programs. The Contingent Valuation Method (Hanemann, 1984) was selected to estimate WTP. Data derives from a food consumption survey conducted in Buenos Aires city in April 2005. The parameters estimates for the selected products were obtained by applying a Binomial Multiple Logistic Regression. The results indicate that Argentinean consumers are willing to pay a price premium to acquire better quality products. Indeed, this is conditioned by the effective prices in the domestic market, in which price premiums range from 6% to 200%, thereby restricting their acquisition. Besides, the scarce availability of these healthy products has also become another meaningful obstacle for domestic consumption expansion in Argentina.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 105th Seminar, March 8-10, 2007, Bologna, Italy with number 7873.
Date of creation: 2007
Date of revision:
Willingness to pay; Food quality attributes; Organic price premium; Argentina.; Food Consumption/Nutrition/Food Safety;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Corsi, Alessandro & Novelli, Silvia, 2003.
"Measuring Quantity-Constrained and Maximum Prices Consumers are Willing to Pay for Quality Improvements: the Case of Organic Beef Meat,"
2003 Annual Meeting, August 16-22, 2003, Durban, South Africa
25900, International Association of Agricultural Economists.
- Corsi Alessandro & Novelli Silvia, 2002. "Measuring quantity-constrained and maximum prices consumers are willing to pay for quality improvements: the case of organic beef meat," Department of Economics Working Papers 200207, University of Turin.
- Latvala, Terhi & Kola, Jukka, 2003. "Impact Of Information On The Demand For Credence Characteristics," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 5(02).
- Estes, Edmund A. & Smith, V. Kerry, 1996. "Price, Quality, And Pesticide Related Health Risk Considerations In Fruit And Vegetable Purchases: An Hedonic Analysis Of Tucson, Arizona Supermarkets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(3), October.
- Farina, Tatiana M.Q. & de Almeida, Silvia F., 2003. "Consumer Perception On Alternative Poultry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 5(02).
- Stenger, Anne, 2000. "Experimental valuation of food safety: Application to sewage sludge," Food Policy, Elsevier, vol. 25(2), pages 211-218, April.
- Lusk,Jayson L. & Shogren,Jason F., 2007.
Cambridge University Press, number 9780521855167.
- Buzby, Jean C. & Ready, Richard C. & Skees, Jerry R., 1995. "Contingent Valuation In Food Policy Analysis: A Case Study Of A Pesticide-Residue Risk Reduction," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(02), December.
- Richard Carson & Nicholas Flores & Norman Meade, 2001.
"Contingent Valuation: Controversies and Evidence,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 19(2), pages 173-210, June.
- Carson, Richard T & Flores, Nicholas A, 2000. "Contingent Valuation: Controversies and Evidence," University of California at San Diego, Economics Working Paper Series qt75k752s7, Department of Economics, UC San Diego.
- Buzby, Jean C. & Fox, John A. & Ready, Richard C. & Crutchfield, Stephen R., 1998. "Measuring Consumer Benefits Of Food Safety Risk Reductions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(01), July.
- Byrne, Patrick J. & Toensmeyer, Ulrich C. & German, Carl L. & Muller, H. Reed, 1991. "Analysis Of Consumer Attitudes Toward Organic Produce Purchase Likelihood," Journal of Food Distribution Research, Food Distribution Research Society, vol. 22(2), June.
- Govindasamy, Ramu & Italia, John, 1999. "Predicting Willingness-To-Pay A Premium For Organically Grown Fresh Produce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(2), July.
- Goldberg, Isabell & Roosen, Jutta & Nayga, Rodolfo M., Jr., 2006. "Parental Response to Health Risk Information: A Lab Experiment on Evaluating Willingness-to-Pay for Safer Infant Milk Formula," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25672, International Association of Agricultural Economists.
- Trudy Ann Cameron & John Quiggin, 1992.
"Estimation Using Contingent Valuation Data From a "Dichotomous Choice with Follow-Up" Questionnaire,"
UCLA Economics Working Papers
653, UCLA Department of Economics.
- Cameron Trudy Ann & Quiggin John, 1994. "Estimation Using Contingent Valuation Data from a Dichotomous Choice with Follow-Up Questionnaire," Journal of Environmental Economics and Management, Elsevier, vol. 27(3), pages 218-234, November.
- Govindasamy, Ramu & Italia, John, 1997. "Consumer Response to Integrated Pest Management and Organic Agriculture: An Econometric Analysis," P Series 36727, Rutgers University, Department of Agricultural, Food and Resource Economics.
- Herriges, Joseph A. & Shogren, Jason F., 1996.
"Starting Point Bias in Dichotomous Choice Valuation with Follow-Up Questioning,"
Journal of Environmental Economics and Management,
Elsevier, vol. 30(1), pages 112-131, January.
- Herriges, Joseph A. & Shogren, Jason F., 1996. "Starting Point Bias in Dichotomous Choice Valuation with Follow-Up Questioning," Staff General Research Papers 1501, Iowa State University, Department of Economics.
- Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
- Kuchler, Fred & Golan, Elise H., 1999. "Assigning Values To Life: Comparing Methods For Valuing Health Risks," Agricultural Economics Reports 34037, United States Department of Agriculture, Economic Research Service.
- Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
- Rothschild, Michael & Stiglitz, Joseph E, 1976. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information," The Quarterly Journal of Economics, MIT Press, vol. 90(4), pages 630-49, November.
- Cao, Kay & Gibson, John & Scrimgeour, Frank G., 2005. "An Experimental Approach To Estimating Willingess-Topay For Improvements In Food Safety," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137802, Australian Agricultural and Resource Economics Society.
- W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
- John M. Antle, 1999. "The New Economics of Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 993-1010.
- Govindasamy, Ramu & DeCongelio, Marc & Italia, John & Barbour, Bruce & Anderson, Karen, 2001. "Empirically Evaluating Consumer Characteristics and Satisfaction with Organic Products," P Series 36736, Rutgers University, Department of Agricultural, Food and Resource Economics.
- Spencer Henson, 1996. "Consumer Willingness To Pay For Reductions In The Risk Of Food Poisoning In The Uk," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 403-420.
- Henson, Spencer & Traill, Bruce, 1993. "The demand for food safety : Market imperfections and the role of government," Food Policy, Elsevier, vol. 18(2), pages 152-162, April.
- Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x.
- Groff, Andrew J. & Kreider, Craig Robert & Toensmeyer, Ulrich C., 1993. "Analysis Of The Delaware Market For Organically Grown Produce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 24(1), February.
- Cooper Joseph C., 1993. "Optimal Bid Selection for Dichotomous Choice Contingent Valuation Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 25-40, January.
- Grunert, Suzanne C. & Juhl, Hans Jorn, 1995. "Values, environmental attitudes, and buying of organic foods," Journal of Economic Psychology, Elsevier, vol. 16(1), pages 39-62, March.
- Idda, Lorenzo & Madau, Fabio A. & Pulina, Pietro, 2008. "The Motivational Profile of Organic Food Consumers: a Survey of Specialized Stores Customers in Italy," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43946, European Association of Agricultural Economists.
- 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).
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.