Chinese consumers’ willingness to pay for rice

Abstract

Purpose China’s expanded rice imports offer a profitable business opportunity for both domestic and international grain marketers. The purpose of this paper is to analyze the impact of select variables on Chinese consumers’ rice choices, specifically focusing on country-of-origin, price, organic, brand, freshness, and taste. The study concludes with suggestions for domestic and international rice marketers to help them develop more efficient rice marketing plans. Design/methodology/approach This study developed a conditional logit model to analyze survey data gathered from Chongqing and Chengdu, two of China’s largest rice consumption cities. Findings Chinese consumers are price sensitive in their rice choices. Country-of-origin is the most imperative factor affecting rice selection for lower food expense consumers but branded rice attracts the attention of higher food expense consumers. Furthermore, these higher food expense consumers are willing to pay a small premium of $0.22 for a pound of organic rice. Research limitations/implications A general trend in demand for organic rice from higher food expense consumers was identified, and this trend predicts a profitable market for organic rice sellers. However, these research findings are geographically limited and may only represent a consumption trend from the two sampled cities rather than all of China. Originality/value The study concludes with meaningful recommendations to rice marketers to aid in developing profitable market entrance strategies to China.

Consumers’ Willingness to Pay for Organic Foods in China: Bibliometric Review for an Emerging Literature

“…Xu, Su, and Lone [11] also found that price is a major determinant of the willingness of Chinese consumers to pay for organic foods. The results of the study support the premise that low food expense consumers are attracted to brands of rice that are affordable, hence low willingness to pay for organic foods.…”

El acaparamiento de tierras de China desde la ecología-mundo: la búsqueda de soja, arroz y caña de azúcar baratos y los límites a la acumulación de capital

“…En primer lugar, ese resultado responde a la necesidad de China de satisfacer la demanda por variedad de alimentos de la población. Reflejo de ello es el alza del consumo de variedades de arroz provenientes de Vietnam, Camboya, Pakistán y Tailandia, que compiten con los cultivadores chinos en precio, calidad y seguridad (Xu, Su y Lone., 2018). La última es sumamente relevante, ya que las importaciones fueron estimuladas, además, por la preocupación social que generaron los escándalos por la producción de arroz tóxico (H. .…”

“…Entre 2007 y 2014, estos se duplicaron (H. , lo que perjudicó a los consumidores de menores ingresos. Esto incentivó las importaciones de arroz de menor calidad de Laos, India y Camboya (Xu, Su y Lone, 2018). En adición, es probable que el alza de los costos de producción, la competencia de cultivos y la escasez de agua aumenten el atractivo del arroz importado (Bandumula, 2017).…”

Integrating environmental parameters and economic benefits to analyze the ecological agriculture (EA) application in the mountain rice paddy system of Chongqing, China

“…Thus, it is found that the labor cost of EA is about 3.6 times that of CA. Regarding the cash inflow, the rice yield for CA was 7500 kg/ ha and the average price of CA was about 5 CNY/kg for several years [31]; thus, the economic benefits of CA is 21,000 CNY (3.75 CNY/m 2 ) with NPV amounting to 2.98 CNY/m 2 . The rice yield of EA was 3700 kg/ha, but the price is 26 CNY/kg, which is five times higher than CA.…”

“…Since the land rent in EA accounted for 66% of the cost (12,600 CNY or 3 CNY/m 2 ), if the farmland is managed without rent fee as CA, the net economic benefits of EA will significantly increase. The cash inflow was characterized as economic benefits received and ecosystem services provided, in which the rice price is the most important factor due to the fact that Chinese consumers are price sensitive in their rice purchases [31]. Meanwhile, rice price is also highly correlated to the scale of rice cultivation and sales [31,47].…”