Consumer Willingness to Pay for Locally Grown Produce Designed to Support Local Food Banks and Enhance Locally Grown Producer Markets
This study investigates the possibility of using local food banks as a distributor in the local food supply chain. The specific research objective is 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. Preliminary estimates reveal that households are willing to pay (WTP) 22.90% more for locally grown produce relative to non-locally grown, and 14.64% more for locally produced animal products. In absolute terms, consumers are WTP a $0.15 per pound premium for locally grown produce and $0.43 per pound premium for local animal products. When it was noted that a food bank donation is incorporated into product price, consumers are willing to pay a price dedicated donation premium of 4.80% ($0.03 per pound) for locally grown produce and 5.80% ($0.15 per pound) for local animal products. Results were found to vary by respondent income and gender.
|Date of creation:||2013|
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- Loureiro, Maria L. & Hine, Susan E., 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, Southern Agricultural Economics Association, vol. 34(03), December.
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- 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), April.
- 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), November.
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