IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/275901.html
   My bibliography  Save this paper

Assessing the Market Premium for Organic Certification among Canadian Community Supported Agriculture Programs

Author

Listed:
  • Zhou, Y.

Abstract

Community Supported Agriculture (CSA) is a farming concept that allows growers and consumers to partner together to share the risks and benefits of food production. This study examines the impact of organic certification on Canadian CSA share prices. I use Canadian CSA data collected from online sources that documents CSA share prices and characteristics of CSA farms. Results suggest that CSA farms that self-identify as organic charge a 13% premium over conventional farms. I also find that CSA farms that are certified organic charge a 16% premium. These premiums are not statistically different from each other, which suggests that organic certification does not increase the premium relative to uncertified organic. It appears as though CSA, which is a direct marketing concept, acts as a substitute for third-party certification. This study also identifies several parameters that are important for CSA programs, namely the number of weeks the CSA provides produce, the average number of vegetable varieties, and the number of pick-up locations.

Suggested Citation

  • Zhou, Y., 2018. "Assessing the Market Premium for Organic Certification among Canadian Community Supported Agriculture Programs," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275901, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:275901
    DOI: 10.22004/ag.econ.275901
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/275901/files/2533.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.275901?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. Cristina Connolly & H. Allen Klaiber, 2014. "Does Organic Command a Premium When the Food is Already Local?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 1102-1116.
    2. Feenstra, Robert C, 1995. "Exact Hedonic Price Indexes," The Review of Economics and Statistics, MIT Press, vol. 77(4), pages 634-653, November.
    3. Cheryl Brown & Stacy Miller, 2008. "The Impacts of Local Markets: A Review of Research on Farmers Markets and Community Supported Agriculture (CSA)," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1298-1302.
    4. Veldstra, Michael D. & Alexander, Corinne E. & Marshall, Maria I., 2014. "To certify or not to certify? Separating the organic production and certification decisions," Food Policy, Elsevier, vol. 49(P2), pages 429-436.
    5. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
    6. Thomas W. Sproul & Jaclyn D. Kropp, 2015. "A General Equilibrium Theory of Contracts in Community Supported Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(5), pages 1345-1359.
    7. Craig J. Thompson & Gokcen Coskuner-Balli, 2007. "Countervailing Market Responses to Corporate Co-optation and the Ideological Recruitment of Consumption Communities," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(2), pages 135-152, June.
    Full references (including those not matched with items on IDEAS)

    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. Wellner, Marie & Theuvsen, Ludwig, 2016. "Community Supported Agriculture Als Neuer Impuls Für Die Regionalvermarktung? Stand Der Forschung Und Abgrenzung Von Anderen Alternativen Lebensmittelnetzwerken," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244757, German Association of Agricultural Economists (GEWISOLA).
    2. Si Tan & Weiping Chen, 2019. "Can members’ WeChat engagement affect relational outcomes in community‐supported agriculture? Empirical evidence from China," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 36-52, January.
    3. Michael Vassalos & Zhifeng Gao & Lisha Zhang, 2017. "Factors Affecting Current and Future CSA Participation," Sustainability, MDPI, vol. 9(3), pages 1-16, March.
    4. Vassalos, Michael & Gao, Zhifeng & Zhang, Lisha, 2016. "Who are the CSA Consumers and how to Promote CSA to more Consumers?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235872, Agricultural and Applied Economics Association.
    5. Bernard, Kévin & Bonein, Aurélie & Bougherara, Douadia, 2016. "Community Supported Agriculture and Preferences for Risk and Fairness," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 234904, Agricultural and Applied Economics Association.
    6. Marie Diekmann & Ludwig Theuvsen, 2019. "Value structures determining community supported agriculture: insights from Germany," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(4), pages 733-746, December.
    7. Adalja, Aaron & Hanson, James & Towe, Charles & Tselepidakis, Elina, 2015. "An Examination of Consumer Willingness to Pay for Local Products," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(3), pages 253-274, December.
    8. Katchova, Ani L. & Woods, Timothy A., 2013. "Local Foods and Food Cooperatives: Ethics, Economics and Competition Issues," Staff Papers 164519, University of Kentucky, Department of Agricultural Economics.
    9. Wille, Stefan Clemens & Barklage, Britta & Spiller, Achim & von Meyer-Höfer, Marie, 2018. "Challenging factors of farmer-to-consumer direct marketing: An empirical analysis of German livestock owners," DARE Discussion Papers 1807, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    10. Shi, Wei & Halstead, John & Huang, Ju-Chin, 2016. "Consumers’ Willingness to Pay for Locally Grown Produce: Comparison of New Hampshire and Massachusetts Results," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236109, Agricultural and Applied Economics Association.
    11. Panchalingam, Thadchaigeni & Howard, Gregory & Allen Klaiber, H. & Roe, Brian E., 2023. "Food choice behavior of adolescents under parent-child interaction in the context of US school lunch programs," Food Policy, Elsevier, vol. 115(C).
    12. Berning, Joshua P., 2012. "Access to Local Agriculture and Weight Outcomes," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(1), pages 57-71, April.
    13. 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.
    14. Ge, Houtian & Goetz, Stephan & Canning, Patrick & Perez, Agnes, 2018. "Optimal locations of fresh produce aggregation facilities in the United States with scale economies," International Journal of Production Economics, Elsevier, vol. 197(C), pages 143-157.
    15. Jason Winfree & Philip Watson, 2021. "Buy Local and Social Interaction," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1454-1477, August.
    16. Xiao Dong & H. Allen Klaiber & Zoë Plakias, 2023. "I scream, you scream, we all scream for local ice cream: Consumer preferences for locally processed foods," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 51-64, January.
    17. Catherine Brinkley & Gwyneth M. Manser & Sasha Pesci, 2021. "Growing pains in local food systems: a longitudinal social network analysis on local food marketing in Baltimore County, Maryland and Chester County, Pennsylvania," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(4), pages 911-927, December.
    18. Catherine Brinkley, 2018. "The Small World of the Alternative Food Network," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    19. Katchova, Ani L. & Woods, Timothy A., 2011. "Sourcing and Promotion of Local Foods by Food Cooperatives in the U.S," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114767, European Association of Agricultural Economists.
    20. Astill, G. & Sabasi, D. & Gwatipedza, J., 2018. "Direct Marketing Strategies and Farmers’ Technical Efficiency in U.S. Agriculture," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275917, International Association of Agricultural Economists.

    More about this item

    Keywords

    Agricultural and Food Policy; International Relations/Trade;

    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:iaae18:275901. 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/iaaeeea.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.