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Risks perceptions and willingness-to-pay for organic fresh chicken in Argentina

Author

Listed:
  • Lacaze, María Victoria
  • Rodríguez, Elsa Mirta M.
  • Lupín, Beatriz

Abstract

In developed countries, a series of food scares and the overuse of antibiotics in animals have increased consumers' concerns about chicken meat quality since the last decades. In Argentina, consumers are clearly becoming oriented to alternative chicken varieties they conceive as "healthier", "tastier" and "free of harmful chemical substances". This paper aims to calculate Argentinean consumers' willingness-to-pay (WTP) for organic fresh chicken in the domestic market by applying the Contingent Valuation approach and with a view to providing some useful insights to promote organic chicken production and consumption. A binomial logit model was estimated with data from a consumer survey conducted in Buenos Aires City, Argentina. Willingness-to-pay is explained by the consumption of organic products, health risks perceptions, production processes and regulation concerns and labels reading. WTP calculation reveals a mean value of 21.4%/kg and a median of 19%/kg. Even though both measures are below than the average price premium prevailing at the sampled stores (24.6%/kg), they are indicating that organic chicken is positively valued. In fact, it is provided with the nutritional and product origin information that consumers require and considered for them as a safer option than conventional chicken.

Suggested Citation

  • Lacaze, María Victoria & Rodríguez, Elsa Mirta M. & Lupín, Beatriz, 2009. "Risks perceptions and willingness-to-pay for organic fresh chicken in Argentina," Nülan. Deposited Documents 815, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
  • Handle: RePEc:nmp:nuland:815
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    References listed on IDEAS

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    1. Buzby, Jean C. & Ready, Richard C. & Skees, Jerry R., 1995. "Contingent Valuation In Food Policy Analysis: A Case Study Of A Pesticide-Residue Risk Reduction," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-13, December.
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    5. Rodriguez, Elsa M. & Lupin, Beatriz & Lacaze, Maria Victoria, 2006. "Consumers' Perceptions about Food Quality Attributes and Their Incidence in Argentinean Organic Choices," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25791, International Association of Agricultural Economists.
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    Cited by:

    1. Ngigi, Marther W. & Okello, Julius Juma & Lagerkvist, Carl Johan & Karanja, Nancy & Mburu, John G., 2010. "Assessment of developing-country urban consumers’ willingness to pay for quality of leafy vegetables: The case of middle and high income consumers in Nairobi, Kenya," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96191, African Association of Agricultural Economists (AAAE).

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    More about this item

    Keywords

    Disposición a Pagar; Comportamiento del Consumidor; Percepción del Consumidor; Alimentos Orgánicos; Pollo; Riesgo; Método de Valoración Contingente; Argentina;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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