Demand for organic produce

Abstract

Purpose -The differentiation that takes place in the Trinidad market only classifies tomatoes on the basis of its size. Farmers in many countries have been making an effort at agronomic differentiation strategies in order to receive better incomes. The purpose of this paper is to determine Trinidadian consumers' willingness to pay (WTP) and the market potential for organic tomatoes when marketed as a differentiated product. Design/methodology/approach -A survey research methodology was used in this study. A total of 405 consumers to be surveyed were randomly chosen using proportionate sampling. A logistic regression was used to estimate the factors affecting consumers' WTP for organic tomatoes. An ANOVA model was used to determine the mean maximum WTP for organic tomatoes based on selected factors. Findings -Most consumers were willing to pay premium prices for organic tomatoes. Results indicated that consumers' area of residence, educational level, income range, and their perception of the health benefits derived from organic tomatoes significantly influenced their WTP for organic tomatoes.Research limitations/implications -Empirical results suggests a differentiated organic market should be implemented in Trinidad. Originality/value -Given an informed consumer base, farmers can expect to receive a premium price for their produce. Consumers can benefit from having more choices in the agricultural market.

Consumers’ willingness to pay for organic beans in southwest Nigeria: towards food safety

“…This could be because women are more knowledgeable about food safety and are in charge of food and nutrition in the household, especially in developing countries. This supports the findings of Narine et al (2015), that being a female enhances WTP for organic food.…”

“…The logistic regression model was used to investigate the driving factors of the buyers' WTP for organic beans. This was used because the decision to pay for organic beans was dichotomous and it has been employed in previous studies (Narine et al 2015;Oyawole et al 2016;Xu et al 2018). The explanatory variables in the model were selected based on previous studies on WTP (Falola 2014;Narine et al 2015;Owusu and Anifori 2013).…”

“…In order to formulate relevant policies on the consumption of organic beans, there is a need to assess consumers' willingness to pay (WTP) for such beans. However, studies on WTP for organic food has largely been focused on vegetables with no focus on beans (Ajibade et al 2017;Bhavsar et al 2018;Güney and Giraldo 2019;James et al 2019;Narine et al 2015;Owusu and Anifori 2013;Oyawole et al 2016;Phillip and Dipeolu 2010;Saleki et al 2019). The studies showed that consumers are aware of organic vegetables and are willing to pay for them.…”

Using Choice Experiments to Estimate the Value of Differentiated Cow's Milk in Puerto Rico

“…Differentiated products fulfill the same basic function relative to conventional products, but have different attributes such as type, style, quality, reputation, appearance, and location (Álamo, 2012). Over the past decades, researchers have devoted considerable efforts to understanding consumer preferences and WTP for differentiated products, including those produced locally (Gil et al, 2000;Loureiro and Hine, 2002;Darby et al, 2008;Printezis and Grebitus, 2020), friendly to the environment (McCluskey and Loureiro, 2003;Jensen et al, 2004;Oh et al, 2015), organic (Loureiro and Hine, 2002;James et al, 2009;Janssen and Hamm, 2012;Narine et al, 2015;Katz et al, 2019), in compliance with fair trade (McCluskey and Loureiro, 2003;Didier and Lucie, 2008), with traceability (Loureiro and Umberger, 2007;Abidoye et al, 2011;Zhang et al, 2012), of better quality (Hsu et al, 2009;Wann et al, 2018), supporting animal welfare (Bennett, 1996;Olynk et al, 2010;Clark et al, 2017), and free of genetically modified organisms (Loureiro and Hine, 2002). However, despite the contribution of prior studies on differentiated products in agriculture, more research needs to be conducted in the Caribbean to better understand consumer WTP for cow's milk that is produced in an eco-friendly manner and follows animal welfare standards that support sustainable dairy production.…”

“…In the Caribbean, to our knowledge, the literature on these products is limited. Narine et al (2015) estimated consumer WTP for organic tomatoes in Trinidad. They found that consumers are willing to pay a 20% premium for organic tomatoes.…”