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Estimating Consumersï¾’ Valuation of Organic and Cosmetically Damaged Apples

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  • Yue, Chengyan
  • Jensen, Helen H.
  • Bonett, Douglas
  • Mueller, Daren S.
  • Nonnecke, Gail R.
  • Gleason, Mark L.

Abstract

A mixed probit model was applied to survey data to analyze consumersï¾’ willingness to buy apples with cosmetic damage caused by the sooty blotch and flyspeck (SBFS) disease complex. The analysis finds consumers will pay a premium for organic production methods and for apples with low amounts of SBFS damage. Behavioral variables such as experience in growing fruit significantly affect the willingness to buy apples of different damage levels. Consumersï¾’ tolerance of very blemished apples is limited and they trade off production technology attributes for cosmetic appearance. Better understanding of this trade-off is important to organic producersï¾’ decisions about disease control.

Suggested Citation

  • Yue, Chengyan & Jensen, Helen H. & Bonett, Douglas & Mueller, Daren S. & Nonnecke, Gail R. & Gleason, Mark L., 2005. "Estimating Consumersï¾’ Valuation of Organic and Cosmetically Damaged Apples," Staff General Research Papers Archive 12490, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:12490
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    File URL: http://www2.econ.iastate.edu/papers/paper_12490.pdf
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    References listed on IDEAS

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    1. Jeffrey R. Blend & Eileen O. van Ravenswaay, 1999. "Measuring Consumer Demand for Ecolabeled Apples," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1072-1077.
    2. Gro Steine & Kari Kolstad, 2006. "Consumers' Willingness to Pay for the Color of Salmon: A Choice Experiment with Real Economic Incentives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1050-1061.
    3. Gary D. Thompson & Julia Kidwell, 1998. "Explaining the Choice of Organic Produce: Cosmetic Defects, Prices, and Consumer Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 277-287.
    4. Alfnes, Frode & Guttormsen, Atle G. & Steine, Gro & Kolstad, Kari, 2005. "Consumers' Willingness To Pay For The Color Of Salmon:A Choice Experiment With Real Economic Incentives," 2005 Annual meeting, July 24-27, Providence, RI 19126, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Roosen, Jutta & Fox, John A. & Hennessy, David A. & Schreiber, Alan, 1998. "Consumers' Valuation Of Insecticide Use Restrictions: An Application To Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 2), pages 1-18, December.
    6. Loureiro, Maria L. & McCluskey, Jill J. & Mittelhammer, Ronald C., 2001. "Assessing Consumer Preferences For Organic, Eco-Labeled, And Regular Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 2), pages 1-13, December.
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