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

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  • Rodríguez, Elsa Mirta M.
  • Lacaze, María Victoria
  • Lupín, 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

  • 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.
  • Handle: RePEc:nmp:nuland:1300
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Lacaze, María Victoria, 2009. "Las preferencias de los consumidores argentinos por alimentos diferenciados por atributos de calidad de procesos: el caso de la leche entera orgánica," Nülan. Deposited Documents 378, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    5. 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.
    6. 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.
    7. 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);Agricultural Economics Association of South Africa (AEASA).
    8. 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.

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