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

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  • 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.

Suggested Citation

  • Cranfield, John A.L. & Magnusson, Erik, 2003. "Canadian Consumer's Willingness-To-Pay For Pesticide Free Food Products: An Ordered Probit Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 6(04).
  • Handle: RePEc:ags:ifaamr:34381
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    File URL: http://purl.umn.edu/34381
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. 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 (IFAMA), vol. 9(02).
    3. Schott, Lenna & Bernard, John, 2015. "Comparing Consumer's WIllingness to Pay for Conventional, Non-Certified Organic and Organic Milk from Small and Large Farms," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), November.
    4. Yeboah, Osei-Agyeman & Goktepe, Ipek & Naanwaab, Cephas B. & 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.
    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. 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 (IFAMA), vol. 14(2).
    7. 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.
    8. Kwamena Quagrainie, 2014. "Consumer Willingness-To-Pay For A Saline Fish Species Grown In The Us Midwest: The Case Of Striped Bass," Working Papers 14-6, Purdue University, College of Agriculture, Department of Agricultural Economics.
    9. Costa, Cristina Amaro da & Santos, José Lima, 2016. "Estimating the demand curve for sustainable use of pesticides from contingent-valuation data," Ecological Economics, Elsevier, vol. 127(C), pages 121-128.
    10. 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.
    11. 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).
    12. Eric Giraud-Héraud & Maria Aguiar Fontes & Alexandra Seabra Pinto, 2014. "Crise sanitaires de l'alimentation et analyses comportementales," Working Papers hal-00949126, HAL.
    13. 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 (IFAMA), vol. 16(1).
    14. Snyder, Jason & Smart, Jennifer & Goeb, Joey & Tschirley, David, 2015. "Pesticide use in Sub-Saharan Africa: Estimates, Projections, and Implications in the Context of Food System Transformation," Miscellaneous Publications 230980, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. 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.
    16. Vidyahwati Tenrisanna & Mohammad Mafizur Rahman & Rasheda Khanam, 2016. "Factors Affecting Consumers' Willingness to Pay for Imported Offal in Indonesia: A Case Study for Makassar City," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 15(2), pages 145-159, December.

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