Willingness to pay and consumer preferences for organic lettuce (Lactuca sativa L.)
Keywords:
organic production, conjoint analysis, contingent valuation, lettuce, Chile
Abstract
Global production of organic products has grown significantly due to increased environmental awareness and healthier lifestyles. However, vegetable growers often lack relevant information about people’s preferences and willingness to pay (WTP) for such products. This difficulty is even more pronounced in developing countries, as Chile, mainly due to the low demand increase for organic products. This research aims to analyze preferences and WTP for Chilean organic lettuce. To obtain the WTP, the contingent valuation (CV) method and conjoint analysis (CA) was applied. The data were obtained from a cross-sectional survey using a representative sample of 416 subjects from the Maule region, Chile, stratified by income level. The results showed that subjects were willing to pay a premium of 26.72 % and 52.83 % for an organic head of lettuce compared to conventionally grown products, according to CA and CV methods, respectively. These results show a strong preference for organic products. Furthermore, the CA method indicated that the organic variety of Lactuca sativa L. var. crispa L., at its lowest observed price, was the consumer’s product of choice. Finally, the main reasons to consume this type of product are, firstly, its higher quality, followed by its taste or smell, and finally, it has better nutritional contents. Therefore, lettuce growers can use the estimated premium price as a reference when making decisions about production and pricing.
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References
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Schleenbecker, R. and Hamm, U. (2013). Consumers' perception of organic product characteristics. A review. Appetite. 71(1):420-429. https://doi.org/10.1016/j.appet.2013.08.020
Stevensa, T. H., Belknera, R., Dennisc, D., Kittredgeb, D. and Willisa, C. 2000. Comparison of contingent valuation and conjoint analysis in ecosystem management. Ecological Economics, 32(1): 63-74. https://doi.org/10.1016/S0921-8009(99)00071-3
Wang, Y., Zhu, Z. and Chu, F. 2017. Organic vs. Non-Organic Food Products: Credence and Price Competition. Sustainability. 9(4):545. https://doi.org/10.3390/su9040545
Willer, H., Schlatter, B., Travinicek, J., Kemper, L. and Lernoud, J. E. (2020). The World of Organic Agriculture - Statistics & Emerging Trends 2020. Research Institute of Organic Agrigulture (FiBL). Frick, Switzerland, p.337. https://cutt.ly/dQyhsCB
Bhattarai, K. 2019. Consumers' Willingness to Pay for Organic Vegetables: Empirical Evidence from Nepal. Journal of Scientific Papers, Economics & Sociology 12(3): 132-146. https://doi.org/10.14254/2071-789X.2019/12-3/9
Britwum, K. and A. Yiannaka. 2019. Labeling food safety attributes: to inform or not to inform?. Agricultural and Food Economics, 7(4):1-21. https://doi.org/10.1186/s40100-019-0123-y
Cerda, A., L. García, J. Cancino and A. Nunez. 2011. Preferences and wiligness to pay for table grapes in the region of Maule, Chile. Revista Brasileira de Fruticultura, 33(3): 784-790. https://doi.org/10.1590/S0100-29452011000300012
Cerda, A., L. Garcia, S. Ortega-Farias and A. Ubilla. 2012. Consumer preferences and willingness to pay for organic apples. Ciencia e Investigación Agraria, 39(1): 47-59. https://doi.org/10.4067/S0718-16202012000100004
Cerda, A., L. García, F. Tolosa and V. García. 2015. Preferences and willingness to pay for organic pears among high-income people in the Metropolitan Region of Santiago, Chile. Ciencia e Investigación Agraria, 42(2): 181-189. https://doi.org/10.4067/S0718-16202015000200005
Cerda, A.A., L.Y. García, F. Tolosa and V. García. 2014. Preferencias y disposición a pagar por manzanas orgánicas en la Región Metropolitana de Santiago de Chile. Revista de la Facultad de Agronomía (LUZ), 31(2): 274-289. https://cutt.ly/xQydLeu
Food and Agriculture Organization (FAO). 2020. Production quantities of Lettuce and chicory by country. Available on: https://cutt.ly/yQyhRG5 Date of consultation: January 2021.
Ferreira, S.D., A. Rial, E. Picón and J. Varela. 2009. Efecto del orden de presentación de los atributos sobre los resultados del Análisis Conjunto. Metodología de Encuestas. 11:103-119. https://cutt.ly/AQyfeZy
Ghimire, M., T.A. Boyer, C.J. Chung and J.Q. Moss. 2016. Consumers' Shares of Preferences for Turfgrass Attributes Using a Discrete Choice Experiment and the Best-Worst Method. Hortscience. 51(7):892-898. https://doi.org/10.21273/HORTSCI.51.7.892
Hernandez-Ortiz, J., J. Trujillo-Murillo and M. Martinez-Damian. 2019. Disposición a pagar por productos orgánicos en Texcoco, Estado de México. Revista Mexicana de Ciencias Agrícolas, 10(7): 1685-1691. https://doi.org/10.29312/remexca.v10i7.926
Hino, A. and R. Imai. 2018. Ranking and Rating: Neglected Biases in Factor Analysis of Postmaterialist Values. International Journal of Public Opinion Research, 31(2):368-381. https://doi.org/10.1093/ijpor/edy007
Jouzi, Z., H. Azadi, F. Taheri, K. Zarafshani, K. Gebrehiwot, S. Van Passel and P. Lebailly. 2017. Organic farming and small-scale farmers: Main opportunities and challenges. Ecological Economics. 132(1):144-154. https://doi.org/10.1016/j.ecolecon.2016.10.016
Kushwah, S., A. Dhir, M. Sagar and B. Gupta. 2019. Determinants of organic food consumption. A systematic literature review on motives and barriers. Appetite. 143(1):104402. https://doi.org/10.1016/j.appet.2019.104402
Li, R., H.-Y. Lee, Y.-T. Lin, C.-W. Liu and P.F. Tsai. 2019. Consumers’ willingness to pay for organic foods in China: Bibliometric review for an emerging literature. International Journal of Environmental Research and Public Health, 16(10):1713. https://doi.org/10.3390/ijerph16101713
Lusk, J.L. and D. Hudson. 2004. Willingness-to-pay estimates and their relevance to agribusiness decision making. Review of Agricultural Economics, 26(2):152-169. https://doi.org/10.1111/j.1467-9353.2004.00168.x
Nishi, I.F., 2017. Consumer willingness to pay for local vegetables grown in a controlled environment: the case of lettuce. Applied Economics and Management. Cornell University, Cornell University Library. p.54. Available on: https://doi.org/10.7298/X4X63K37 Date of consultation: July 12 2021.
Omotesho, O.A., A. Falola, K.F. Omotesho and A.S. Abikoye. 2016. Consumers’ Willingness to Pay for Lettuce in Supermarkets and Specialty Shops in Ilorin Metropolis, Nigeria Centrepoint Journal (Science Edition). 22(1): 36-49. https://cutt.ly/qQygqTA
Pham, T.H., T.N. Nguyen, T.T.H. Phan and N.T. Nguyen. 2019. Evaluating the purchase behaviour of organic food by young consumers in an emerging market economy. Journal of Strategic Marketing, 27(6): 540-556. https://doi.org/10.1080/0965254X.2018.1447984
Rahman, S., M. Mele, Y. Lee and M. Islam. 2021. Consumer Preference, Quality, and Safety of Organic and Conventional Fresh Fruits, Vegetables, and Cereals. Foods. 10(1):105. https://doi.org/10.3390/foods10010105
Ranjbarshamsi, H., M. Najafabadi and S. Hosseini. 2016. Factors Influencing Consumers'Attitudes Toward Organic Agricultural Products. Journal of Agricultural & Food Information 17(2): 110-119. https://doi.org/10.1080/10496505.2016.1176574
Shatilov, M., Razin, A. and Ivanova, M. 2019. Analysis of the world lettuce market. IOP Conference Series: Earth and Environmental Science. 395(1):12053. https://doi.org/10.1088/1755-1315/395/1/012053
Schleenbecker, R. and Hamm, U. (2013). Consumers' perception of organic product characteristics. A review. Appetite. 71(1):420-429. https://doi.org/10.1016/j.appet.2013.08.020
Stevensa, T. H., Belknera, R., Dennisc, D., Kittredgeb, D. and Willisa, C. 2000. Comparison of contingent valuation and conjoint analysis in ecosystem management. Ecological Economics, 32(1): 63-74. https://doi.org/10.1016/S0921-8009(99)00071-3
Wang, Y., Zhu, Z. and Chu, F. 2017. Organic vs. Non-Organic Food Products: Credence and Price Competition. Sustainability. 9(4):545. https://doi.org/10.3390/su9040545
Willer, H., Schlatter, B., Travinicek, J., Kemper, L. and Lernoud, J. E. (2020). The World of Organic Agriculture - Statistics & Emerging Trends 2020. Research Institute of Organic Agrigulture (FiBL). Frick, Switzerland, p.337. https://cutt.ly/dQyhsCB
Published
2021-10-01
How to Cite
A. Cerda, A., Y. García, L., I. Viscay, A., & M. López, B. (2021). Willingness to pay and consumer preferences for organic lettuce (Lactuca sativa L.). Revista De La Facultad De Agronomía De La Universidad Del Zulia, 38(4), 1087-1107. Retrieved from https://www.produccioncientificaluz.org/index.php/agronomia/article/view/36810
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Section
Socioeconomics
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