IDEAS home Printed from https://ideas.repec.org/p/ags/aaea13/150288.html
   My bibliography  Save this paper

Consumer Willingness to Pay for Locally Grown Produce Designed to Support Local Food Banks and Enhance Locally Grown Producer Markets

Author

Listed:
  • Willis, David B.
  • Carpio, Carlos E.
  • Boys, Kathryn A.
  • Young, Emily D.

Abstract

This study investigates the possibility of using local food banks as a distributor in the local food supply chain. A mixed logit model is used to estimate the price premium consumers are willing to pay at retail outlets for locally grown products, if consumers have knowledge that a portion of the purchase price will be used as a donation to support local food banks. Estimates reveal that average households are willing to pay 11.68% ($0.17/lb) more for locally grown produce relative to non-locally grown, and 10.75% ($0.33/lb) more for locally produced animal products. When the locally grown product attribute is combined with a food bank donation the WTP premium increases to 22.33% ($0.33/lb) for produce and 20.50% ($0.64/lb) for animal products. Consumers are only willing to pay a small price premium for products that contain the donation attribute but are not locally grown. However, a strong complimentary relationship was found between the local and donation attribute which suggest consumers have a stronger preference to donate when purchasing locally grown products than when purchasing nonlocal products.

Suggested Citation

  • Willis, David B. & Carpio, Carlos E. & Boys, Kathryn A. & Young, Emily D., 2013. "Consumer Willingness to Pay for Locally Grown Produce Designed to Support Local Food Banks and Enhance Locally Grown Producer Markets," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150288, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150288
    DOI: 10.22004/ag.econ.150288
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/150288/files/Willis%20et%20al%20AAEA%202013R.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.150288?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hinson, Roger A. & Bruchhaus, Michael N., 2005. "Louisiana Strawberries: Consumer Preferences and Retailer Advertising," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(1), pages 1-5, March.
    2. Loureiro, Maria L. & Hine, Susan, 2002. "Discovering Niche Markets: A Comparison of Consumer Willingness to Pay for Local (Colorado Grown), Organic, and GMO-Free Products," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(3), pages 477-487, December.
    3. Eastwood, David B. & Brooker, John R. & Orr, Robert H., 1987. "Consumer Preferences for Local Versus Out-Of-State Grown Selected Fresh Produce: The Case of Knoxville, Tennessee," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(2), pages 183-194, December.
    4. Eastwood, David B. & Brooker, John R. & Orr, Robert H., 1987. "Consumer Preferences For Local Versus Out-Of-State Grown Selected Fresh Produce: The Case Of Knoxville, Tennessee," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(2), pages 1-12, December.
    5. Theresa Selfa & Joan Qazi, 2005. "Place, Taste, or Face-to-Face? Understanding Producer–Consumer Networks in “Local” Food Systems in Washington State," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 22(4), pages 451-464, December.
    6. Biermacher, Jon T. & Upson, Steve & Miller, David C. & Pittman, Dusty, 2007. "Economic Challenges of Small-Scale Vegetable Production and Retailing in Rural Communities: An Example from Rural Oklahoma," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(3), pages 1-13.
    7. Jekanowski, Mark D. & Williams, Daniel R., II & Schiek, William A., 2000. "Consumers' Willingness To Purchase Locally Produced Agricultural Products: An Analysis Of An Indiana Survey," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), pages 1-11, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dobbs, Leah Moore & Jensen, Kimberly L. & Leffew, Megan Bruch & English, Burton C. & Lambert, Dayton M. & Clark, Christopher D., 2016. "Consumer Willingness to Pay for Tennessee Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-24, July.
    2. Vecchi, Martina & Jaenicke, Edward C., 2021. "Local food in times of crisis: the impact of Covid-19 and two reinforcing primes," 2021 Annual Meeting, August 1-3, Austin, Texas 313958, Agricultural and Applied Economics Association.
    3. Printezis, Iryna & Grebitus, Carola, 2018. "Marketing Channels for Local Food," Ecological Economics, Elsevier, vol. 152(C), pages 161-171.
    4. Ekanem, Enefiok & Mafuyai, Mary & Tegegne, Fisseha & Illukpitya, Prabodh, . "Research Report: An Analysis of Consumer Perception of the Importance of Selected Attributes of Fruits and Vegetables: The Case of Tennessee," Journal of Food Distribution Research, Food Distribution Research Society, vol. 51(1).
    5. Dobbs, Leah & Jensen, Kimberly & Leffew, Megan & English, Burton & Lambert, Dayton & Clark, Christopher, 2015. "Willingness to Pay for Tennessee Beef among Tennessee Consumers," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196672, Southern Agricultural Economics Association.
    6. Maureen Stickel & Steven Deller, 2020. "Local Foods and Local Economic Performance," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 335-357, June.
    7. Martina Vecchi & Edward C. Jaenicke & Claudia Schmidt, 2022. "Local food in times of crisis: The impact of COVID‐19 and two reinforcing primes," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 850-873, October.
    8. Spalding, Ashley & Kiesel, Kristin, 2018. "Willingness to Pay for Local, Value-Added Goods," 2018 Annual Meeting, August 5-7, Washington, D.C. 273990, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martinez, Stephen W. & Hand, Michael S. & Da Pra, Michelle & Pollack, Susan L. & Ralston, Katherine L. & Smith, Travis A. & Vogel, Stephen J. & Clark, Shellye & Lohr, Luanne & Low, Sarah A. & Newman, , 2010. "Local Food Systems: Concepts, Impacts, and Issues," Economic Research Report 96635, United States Department of Agriculture, Economic Research Service.
      • Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
    2. Carlos E. Carpio & Olga Isengildina-Massa, 2009. "Consumer willingness to pay for locally grown products: the case of South Carolina," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 412-426.
    3. Giraud, Kelly L. & Bond, Craig A. & Bond, Jennifer Keeling, 2005. "Consumer Preferences for Locally Made Specialty Food Products Across Northern New England," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-13, October.
    4. Yang, Shang-Ho & Woods, Timothy, 2014. "The Divergence of Defining Local Food – Consumer Co-op versus Conventional Grocery Shoppers," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170480, Agricultural and Applied Economics Association.
    5. Faical Akaichi & Rodolfo M. Nayga & Lawton Lanier Nalley, 2017. "Are there trade-offs in valuation with respect to greenhouse gas emissions, origin and food miles attributes?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(1), pages 3-31.
    6. Jennifer Porter & David Conner & Jane Kolodinsky & Amy Trubek, 2017. "Get real: an analysis of student preference for real food," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(4), pages 921-932, December.
    7. Merritt, Meagan G. & Delong, Karen Lewis & Griffith, Andrew P. & Jensen, Kimberly L., 2018. "Consumer Willingness To Pay For Tennessee Certified Beef," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 50(2), pages 233-254, May.
    8. Beamer, Bobby G. & Preston, Warren P., 1991. "Shelf Space Allocation In The Produce Department: Implications For Marketing Specialty Produce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 22(3), pages 1-14, September.
    9. Mwiti, Florine Karuru & Okelo, Julius & Munei, Kimpei, 2015. "Assessment Of Willingness To Pay For Quality Sweetpotato Planting Materials: The Case Of Smallholder Farmers In Tanzania," Dissertations and Theses 269713, University of Nairobi, Department of Agricultural Economics.
    10. Grebitus, Carola & Lusk, Jayson L. & Nayga, Rodolfo M., 2013. "Effect of distance of transportation on willingness to pay for food," Ecological Economics, Elsevier, vol. 88(C), pages 67-75.
    11. Maples, McKenzie & Morgan, Kimberly L. & Interis, Matthew G. & Harri, Ardian, 2013. "Who Buys Food Directly from Producers in the Southeastern United States?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(3), pages 509-518, August.
    12. Taylor, Roy Justin & Sterns, James A., 2005. "A Practical Guide to Market Assessment," 2005 Annual meeting, July 24-27, Providence, RI 19302, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Ying, Jiahui & Shonkwiler, Vanessa P. & Campbell, Benjamin L., 2018. "Willingness to Pay or Not to Pay: Valuing Foods Some Respondents Find Distasteful," 2018 Annual Meeting, August 5-7, Washington, D.C. 274065, Agricultural and Applied Economics Association.
    14. Dobbs, Leah Moore & Jensen, Kimberly L. & Leffew, Megan Bruch & English, Burton C. & Lambert, Dayton M. & Clark, Christopher D., 2016. "Consumer Willingness to Pay for Tennessee Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-24, July.
    15. Wuyang HU & Ping QING & Marvin BATTE & Tim WOODS & Stam ERNST, 2013. "What is local and for what foods does it matter?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(10), pages 454-466.
    16. Ivana Tonkovic Prazic & Kristina Devcic & Ivana Jergovic, 2014. "Analysis Of Consumers’ Local Purchasing In Osijek Baranya County," Economy of eastern Croatia yesterday, today, tommorow, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 3, pages 427-434.
    17. Carlos E. Carpio & Olga Isengildina-Massa, 2016. "Does Government-sponsored Advertising Increase Social Welfare? A Theoretical and Empirical Investigation," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(2), pages 239-259.
    18. Konrád Kiss & Gábor Koncz & Dóra Nagy-Demeter & Bálint Varró & Mercédesz Németh & Csaba Ruszkai, 2019. "Survey of Consumers Responsiveness to Small-Scale Producers Marketing in the Northern Hungary Region," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 15(01), pages 25-34.
    19. Brown, Cheryl & Gandee, Jesse E. & D'Souza, Gerard E., 2006. "West Virginia Farm Direct Marketing: A County Level Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(3), pages 1-10, December.
    20. Elisa Giampietri & Dieter B. A. Koemle & Xiaohua Yu & Adele Finco, 2016. "Consumers’ Sense of Farmers’ Markets: Tasting Sustainability or Just Purchasing Food?," Sustainability, MDPI, vol. 8(11), pages 1-14, November.

    More about this item

    Keywords

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:150288. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.