A contingent valuation analysis to determine profitability of establishing local organic wine markets in Spain

Abstract

In this research an alternative is proposed for viticulture producers that would allow them to maintain their income and prevent the abandonment of their agricultural activity. The proposed alternative is the production of organic wine with subsequent commercialization in the local market. The suitability of the alternative is measured by the acceptance of the product in local markets. This acceptance was determined through contingent valuation, which relates probability of purchase to willingness to pay (WTP). Since regional differences could exist for product acceptance, the preliminary hypothesis was formulated that the importance of the viticulture sector in the regional economy makes consumers value farm work more highly and pay more for sustainable agricultural practices. Two regions of Spain were taken into consideration because of the different weight of their agricultural activity: Castile-La Mancha and the Community of Valencia. A survey of 800 wine consumers was made (400 from each region) to determine WTP. From the results it was shown on the one hand that organizing organic wine in local markets can be a profitable alternative for wine producers and, on the other hand, consumers from regions where wine production shares a larger proportion of the regional economy are willing to pay more for organic wine.

Willingness-to-Pay for Sustainable Aquaculture Products: Evidence from Korean Red Seabream Aquaculture

“…It has seen application even in fields of outdoor recreation and tourism [27][28][29]. In food marketing research, CVM has been used to estimate consumer WTP for organic food and environmentally friendly products [30][31][32].…”

Organic consumers’ preferences and willingness‐to‐pay for locally produced animal products

“…The rationale for the present study were two interrelated trends within the food market which also affect the organic market: increasing consumer demand for local organic food (Carpio and Isengildina-Massa, 2009;Sirieix et al, 2009;Adams and Salois, 2010;Bernab eu et al, 2010;Brugarolas et al, 2010;Zander and Hamm, 2010;Sirieix et al, 2011;Mirosa and Lawson, 2012;Gracia et al, 2013;Pugliese et al, 2013;de Magistris andGracia, 2014, Denver andJensen, 2014) and increasing consumer interest in transparency throughout the entire food supply chain.…”

Farmers' Willingness to Pay for Establishing a Collective Postharvest Refrigeration Unit: Evidence from an Eastern Mediterranean Rural Community

“…Within the agro-food sector, many studies (Abass et al, 2014;Adeoye, Odeleye, Babalola, & Afolayan, 2009;Basappa, Deshmanya, & Patil, 2007;Basavaraja, Mahajanashetti, & Udagatti, 2007;Buyukbay, Uzunoz, & Bal, 2010;Buzby, Farah-Wells, & Hyman, 2014;Sharmaa & Singhb, 2011;Tefera, 2012;Tefera et al, 2011) have conducted economic analyses of postharvest losses of different types of produce. Other studies have used survey-based stated preference (SP) tools, such as contingent valuation (CV) (Brugarolas, Martinez-Carrasco, Bernabeu, & Martinez-Poveda, 2009;Da Costa & Santos, 2016;Garming & Waibel, 2009;Khan & Damalas, 2015;Posri, Shankar, & Chadbunchachai, 2006) and choice experiments (CE) (Chakir, David, Gozlan, & Sangare, 2016;Jin, Wang, He, & Gong, 2017;Mahadevan & Asafu-Adjaye, 2015;Travisi & Nijkamp, 2008), to estimate the willingness to pay (WTP) to prevent the potential environmental and health risks arising from pre-or postharvest practices. In addition, these methods have mainly been used in agro-food marketing for analyzing WTP for residue-free food products.…”