Feasibility of Forming Markets for Indigenous Peoples’ Organic Products

Abstract

Iranian nomads’ meat and dairy products are organic and more valuable than conventional products for trading and supplying in local markets. This is due to the use of natural nutritional supplementation, without hormones and artificial chemicals, in breeding domestic animals. However, the real value of the organic products is not reflected in the market. In this regard, we studied the feasibility of forming a local market for nomads’ organic meat and milk products in Iran. This study used a sample of 366 questionnaires from nomads of five famous tribes, namely Soleimani, Mehni, Kochomi, Jebalbarezi, and Aieneyi in Kerman province and 794 questionnaires from non-nomadic consumers. The results indicate that nomads’ average willingness to accept (WTA) was 0.46 USD per liter and 5.64 USD per kg in the sale of organic milk and organic meat, respectively. Also, the consumers’ willingness to pay (WTP) for organic milk and organic meat was 0.50 USD per liter and 6.15 USD per kg, respectively. Since the WTA for both products was less than the WTP, the formation and development of local markets in supplying organic products are possible. The appropriate price policy for organic products in such markets can provide nomads with financial benefits and consumers with access to healthy foods.