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Willingness to pay for organic food in Argentina: Evidence from a consumer survey

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

Abstract

Most 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.

Suggested Citation

  • Rodriguez, Elsa M. & Lacaze, Maria Victoria & Lupin, Beatriz, 2007. "Willingness to pay for organic food in Argentina: Evidence from a consumer survey," 105th Seminar, March 8-10, 2007, Bologna, Italy 7873, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa105:7873
    DOI: 10.22004/ag.econ.7873
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    2. Rodríguez, Elsa Mirta M. & Lupín, Beatriz & Lacaze, María Victoria, 2007. "Los atributos de calidad en el consumo de alimentos diferenciados: aplicación de metodologías de evaluación e implicancias de política," Nülan. Deposited Documents 797, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Hamed Rafiee & Omid Karami & Hamid Reza Saeidi Goraghani & Hossein Azarnivand & Hossein Arzani, 2023. "Feasibility of Forming Markets for Indigenous Peoples’ Organic Products," Sustainability, MDPI, vol. 15(14), pages 1-11, July.
    4. 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.
    5. My, Nguyen H.D. & Demont, Matty & Van Loo, Ellen J. & de Guia, Annalyn & Rutsaert, Pieter & Tuan, Tran Huu & Verbeke, Wim, 2018. "What is the value of sustainably-produced rice? Consumer evidence from experimental auctions in Vietnam," Food Policy, Elsevier, vol. 79(C), pages 283-296.
    6. Thi-Minh-Ngoc Luu, 2024. "What Motivates Generation Z in Vietnam to Purchase Organic Food? An Application of Extended Theory of Planned Behaviour," GATR Journals jmmr328, Global Academy of Training and Research (GATR) Enterprise.
    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. Lupín, Beatriz & Lacaze, María Victoria & Rodríguez, Elsa Mirta M., 2007. "Las percepciones de riesgo de los consumidores en alimentos lácteos: aplicación de una regresión logística ordinal," Nülan. Deposited Documents 1287, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    9. Vapa-Tankosic, Jelena & Ignjatijevic, Svetlana & Kranjac, Mirjana & Lekic, Snezana & Prodanovic, Radivoj, 2018. "Willingness to pay for organic products on the Serbian market," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    10. Rodríguez, Elsa Mirta M. & Lacaze, María Victoria & Lupín, Beatriz, 2007. "Willingness to pay for organic food in Argentina: evidence from a consumer survey," Nülan. Deposited Documents 1300, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    11. Huynh Viet Khai, 2015. "Assessing Consumer Preferences for Organic Vegetables: A Case Study in the Mekong Delta, Vietnam," Information Management and Business Review, AMH International, vol. 7(1), pages 41-47.
    12. 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).
    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, vol. 16(1), pages 1-20, February.
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    16. Jerop, Rebecca, 2012. "Consumer Willingness to Pay for Dairy Goat Milk in Siaya County, Kenya," Research Theses 243449, Collaborative Masters Program in Agricultural and Applied Economics.
    17. Charity, Nabwire Ephamia Juma, 2016. "Economic Analysis Of Consumers’ Awareness And Willingness To Pay For Geographical Indicators And Other Quality Attributes Of Honey In Kenya," Research Theses 265574, Collaborative Masters Program in Agricultural and Applied Economics.
    18. Farheen Naz & Judit Oláh & Dinu Vasile & Róbert Magda, 2020. "Green Purchase Behavior of University Students in Hungary: An Empirical Study," Sustainability, MDPI, vol. 12(23), pages 1-21, December.
    19. Alina R. Kadyrova, 2015. "Approaches to Statistical Measurement of Advanced Technologies: A Comparative Study," HSE Working papers WP BRP 38/STI/2015, National Research University Higher School of Economics.
    20. Jelena Vapa-Tankosić & Svetlana Ignjatijević & Jelena Kiurski & Jovana Milenković & Irena Milojević, 2020. "Analysis of Consumers’ Willingness to Pay for Organic and Local Honey in Serbia," Sustainability, MDPI, vol. 12(11), pages 1-23, June.
    21. Kokthi, Elena & Canco, Irina & Topulli, Eneida, 2021. "Whose salad is organic? An attribute segmentation perspective-evidence from Albania," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 23(2), July.

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