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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.

Suggested Citation

  • Rodriguez, Elsa M. & Lacaze, Maria Victoria & Lupin, Beatriz, 2008. "Contingent Valuation of Consumers’ Willingness-to-Pay for Organic Food in Argentina," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43947, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae08:43947
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    References listed on IDEAS

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    2. 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.
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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).
    2. Adepoju, Abimbola O. & Oyewole, Olaniyi O., 2013. "Households’ Perception And Willingness To Pay For Bread With Cassava Flour Inclusion In Osogbo Metropolis, Osun State, Nigeria," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160285, African Association of Agricultural Economists (AAAE).

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    Keywords

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

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