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Contingent Valuation of Consumers’ Willingness-to-Pay for Organic Food in Argentina

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  • Rodriguez, Elsa M.
  • Lacaze, Maria Victoria
  • Lupin, Beatriz

Abstract

Throughout these last years, organic agriculture has undergone a remarkable expansion due, among other things, to the greater interest shown by consumers aware of food safety concerns involving real or perceived quality risks [1]. 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 some useful insights to gain support and outline strategies for promotion of organic production, marketing, regulation, and labelling programs of organic food products. A Binomial Multiple Logistic Regression model is estimated with data from a food consumption survey conducted in Buenos Aires city, Argentina, in April 2005. The Contingent Valuation Method was chosen in order to calculate their WTP for five organic selected products: Regular Milk, Leafy Vegetables, Whole Wheat Flour, Fresh Chicken and Aromatic Herbs. The empirical results reveal that consumers are willing to pay a premium for these products and that although prices play an important role, lack of store availability and of a reliable regulatory system to mitigate quality risks constraint consumption of organic products in this country.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 43947.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:43947

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Keywords: Willingness-to-pay; Food attributes; Organics; Demand and Price Analysis;

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  1. Goldberg, Isabell & Roosen, Jutta, 2005. "Measuring Consumer Willingness to Pay for a Health Risk Reduction of Salmonellosis and Campylobacteriosis," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24512, European Association of Agricultural Economists.
  2. 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.
  3. Rodriguez, Elsa M. & Lupin, Beatriz & Lacaze, Maria Victoria, 2006. "Consumers' Perceptions about Food Quality Attributes and Their Incidence in Argentinean Organic Choices," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25791, International Association of Agricultural Economists.
  4. Robert D. Weaver & David J. Evans & A. E. Luloff, 1992. "Pesticide use in tomato production: Consumer concerns and willingness-to-pay," Agribusiness, John Wiley & Sons, Ltd., vol. 8(2), pages 131-142.
  5. Antle, John M., 1999. "Benefits and costs of food safety regulation," Food Policy, Elsevier, vol. 24(6), pages 605-623, December.
  6. 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.
  7. Lohr, Luanne, 2001. "Factors Affecting International Demand And Trade In Organic Food Products," Faculty Series 16674, University of Georgia, Department of Agricultural and Applied Economics.
  8. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  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.
  10. Carmona-Torres, Carmen & Calatrava-Requena, Javier, 2006. "Bid Design and its Influence on the Stated Willingness to Pay in a Contingent Valuation Study," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25367, International Association of Agricultural Economists.
  11. 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).
  12. 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.
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Cited by:
  1. Belaya, Vera & Hansen, Heiko & Pinior, Beate, 2012. "Measuring The Costs Of Foodborne Diseases: A Review And Classification Of The Literature," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 138195, German Association of Agricultural Economists (GEWISOLA).

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