Consumers' preferences for locally produced food: A study in southeast Missouri

2003 ◽  
Vol 18 (4) ◽  
pp. 213-224 ◽  
Author(s):  
Cheryl Brown
Keyword(s):  
Consumer Preferences ◽  
Organic Food ◽  
Mail Survey ◽  
Farm Households ◽  
Farmers Markets ◽  
Price Premium ◽  
Family Farms ◽  
Environmental Group ◽  
Southeast Missouri ◽  
Locally Grown

AbstractA mail survey was used to gather information from the main food buyer in random households in southeast Missouri to analyze consumer preferences for locally grown food. A majority of shoppers in the region were not aware of the state's AgriMissouri promotion program. Consumers defined locally grown not as a statewide concept but as a narrower regional concept that could cross state boundaries. Most important when purchasing produce were quality and freshness, and most consumers perceived local produce at farmers' markets to be of higher quality and lower price. Farm households were not significantly different from other households in the region and did not show a preference or willingness to pay a price premium for local food products. Food buyers who were members of an environmental group had higher education and income and were more likely to purchase organic food and more willing to pay a higher price for local produce. Households in which someone was raised on a farm, or had parents who were raised on a farm, had a preference for locally grown food and were willing to pay a price premium for it. Marketing local products should stress quality, freshness, and price competitiveness, and appeal to environmentalists and those with a favorable attitude towards family farms.

scholarly journals Consumer Preferences and Willingness to Pay for Locally Grown Organic Apples: Evidence from a Conjoint Study

HortScience ◽  
2010 ◽  
Vol 45 (3) ◽  
pp. 376-381 ◽  
Author(s):  
Qingbin Wang ◽  
Junjie Sun ◽  
Robert Parsons
Keyword(s):  
United States ◽  
Willingness To Pay ◽  
Food Industry ◽  
Consumer Preferences ◽  
Organic Food ◽  
Production Method ◽  
The United States ◽  
Important Food ◽  
Consumer Valuation ◽  
Locally Grown

Although organic food has rapidly emerged as an important food industry in the United States and many other countries, farmers and fruit growers need more information on consumer preferences and willingness to pay for locally grown organic food products to make better production and marketing decisions. This article presents the findings from a conjoint study on consumer valuation of major attributes of fresh apples (production method, price, certification, and product origin) and the tradeoffs between price and other attributes. Analysis results based on data from 382 respondents, or 3056 observations, in the state of Vermont suggest that there is likely a significant niche market for locally grown organic apples, and many consumers, especially people who had purchased organic food, are willing to pay significantly more for organic apples produced locally and certified by the Northeast Organic Farming Association. This study also suggests that there are significant differences in preferences between respondents who had purchased organic food and respondents who had not purchased organic food, although both groups showed a strong preference and willingness to pay for locally grown apples as compared with apples from other regions.

scholarly journals Consumer Preferences for Sustainable Product Attributes and Farm Program Features

2020 ◽  
Vol 12 (18) ◽  
pp. 7388
Author(s):  
Chengyan Yue ◽  
Yufeng Lai ◽  
Jingjing Wang ◽  
Paul Mitchell
Keyword(s):  
Fair Trade ◽  
Logit Model ◽  
Latent Class ◽  
Consumer Preferences ◽  
Choice Experiments ◽  
Price Premium ◽  
Latent Class Logit ◽  
Sustainable Product ◽  
Locally Grown ◽  
Farm Program

Previous literature primarily focused on consumers’ preference for specific sustainable attributes, such as a product being organic, eco-friendly, locally grown, and fair trade. Little is known about consumers’ preference for sustainable program features. We conduct two online choice experiments with U.S. consumers and find that consumers consistently care about farmers’ engagements in sustainable programs, and they are willing to pay a price premium for products from such programs. Consumers also value promoting science in sustainability, establishing concrete measurements of sustainability, and communicating sustainable practices with consumers and downstream industries. We apply the latent class logit model to investigate the potential segmentation of consumers. Three consumer segments are identified based on participants’ heterogeneity in preferences. Our research provides useful information for designing new sustainability programs.

scholarly journals Consumer Preferences for Private Label Brand vs. National Brand Organic Juice and Eggs: A Latent Class Approach

2021 ◽  
Vol 13 (13) ◽  
pp. 7028
Author(s):  
Ellen J. Van Loo ◽  
Fien Minnens ◽  
Wim Verbeke
Keyword(s):  
Orange Juice ◽  
Latent Class ◽  
Consumer Preferences ◽  
Latent Class Model ◽  
Organic Food ◽  
Food Products ◽  
Organic Production ◽  
Private Label ◽  
National Brand ◽  
Major Barrier

Many retailers have expanded and diversified their private label food product assortment by offering premium-quality private label food products such as organic products. With price being identified as the major barrier for organic food purchases, private label organic food products could be a suitable and more affordable alternative for many consumers. While numerous studies have examined consumer preferences for organic food, very few organic food studies have incorporated the concept of private labels. This study addresses this research gap by studying consumer preferences and willingness to pay for national brand and private label organic food using a latent class model. Specifically, this study analyzes consumer preferences for organic eggs and orange juice and the effect of national branding versus private label. Findings show heterogeneity in consumer preferences for production method and brand, with three consumer segments being identified based on their preferences for both juice and eggs. For eggs, about half of the consumers prefer private label and organic production, whereas one-quarter clearly prefers organic, and another quarter is indifferent about the brand and the organic production. For orange juice, the majority (75%) prefer the national brand. In addition, one-quarter of the consumers prefers organic juice, and about one-third values both organic and the national brand.

scholarly journals Tailoring rice varieties to consumer preferences induced by cultural and colonial heritage: Lessons from New Rice for Africa (NERICA) in The Gambia

2021 ◽  
pp. 003072702110197
Author(s):  
Kofi Britwum ◽  
Matty Demont
Keyword(s):  
Consumer Preferences ◽  
Rice Variety ◽  
Import Substitution ◽  
The Gambia ◽  
Rice Varieties ◽  
Auction Market ◽  
Asian Rice ◽  
Market Competitiveness ◽  
New Varieties ◽  
Locally Grown

Rice breeding priorities in Africa often focus on agronomic gains. However, being a net importer of rice, the continent’s varietal replacement success also crucially hinges on new varieties’ market competitiveness vis-à-vis imports. Markets have been profoundly shaped by cultural and colonial heritage. Indigenous preferences for African rice can be traced back to ancient rice domestication and have been subsequently influenced by Asian rice import standards as a result of colonial import substitution policies. New Rice for Africa (NERICA) crosses between African and Asian rice species have the potential to reconcile these dual indigenous/import preferences, but little is known about their market competitiveness. We use auction market data to assess the intrinsic and extrinsic consumer value of NERICA in The Gambia relative to two market standards: branded, Asian rice imports and the most popular locally grown Asian rice variety. We categorize rice consumers into four market segments, based on their heritage as evidenced by their preferences and genealogical lineages. NERICA outperforms both Asian rice standards in terms of market competitiveness, and its value is further reinforced by colonial heritage and labeling, but somewhat weakened by cultural heritage. Consumers were found to pay price premiums for NERICA in the range of 5% to 22% relative to Asian rice imports, with the highest premiums offered by consumers with colonial heritage, representing 86% of the sample. Maintaining and expanding this market will require breeders to incorporate trait mixes that reconcile agronomic gains and consumer preferences induced by cultural and colonial heritage.

MARKET POTENTIAL AS A GREEN AGRICULTURAL PRODUCTION DEVELOPMENT FACTOR

2020 ◽  
Vol 10 (8) ◽  
pp. 1507-1525
Author(s):  
E.A. Aleshina ◽  
◽  
A.A. Leksina ◽  
Zh. S. Dossumova ◽  
◽  
...  
Keyword(s):  
Consumer Preferences ◽  
Organic Food ◽  
Food Products ◽  
Developed Countries ◽  
Industrial Sector ◽  
The State ◽  
Healthy Diet ◽  
Market Potential ◽  
State Management ◽  
The Developed Countries

Organic agriculture, based on natural production technologies, obtains a great potential for reversing humanity to a healthy diet and living in harmony with nature by improving the state of the ecosystem. The share of organic food products in the market of the developed countries is already quite high; and various institutional systems of the industry have been introduced and are being improved in the leading countries of the world. Domestic agribusiness is currently lagging behind in these matters, but the situation should be significantly changed by the adopted law and state standard regulating the requirements for the organic sector. In this regard, an objective need arose to substantiate the capabilities and the resource potential of the Saratov region in this sphere. Within the framework of the presented research, an interdisciplinary fundamental platform to develop the theory of the organic food products market was formed. As a result, the elements of the scientific methodology (theories, principles, factors, methods) of its functioning were identified, which made it possible to substantiate the potential capacity of the regional consumer market for organic food. The calculation was made taking into account the rational norms of food consumption that meet modern requirements for a healthy diet, the heterogeneity of consumer preferences, the price gap for the main conventional and organic products in retail and the dispersion of prices for the latter, the implementation of state policy to protect and improve the health of certain population groups. This study is intended for the state management bodies of the agro-industrial sector, the leadership of agricultural, processing and marketing enterprises, the structures of wholesale and retail food products trade and branch research institutions.

scholarly journals Analysis of Consumer’s WTP for Cowpea Varieties in Osun State, Nigeria: the Hedonic Pricing Approach

2018 ◽  
Vol 6 (9) ◽  
pp. 1120 ◽  
Author(s):  
Rabirou Kassali ◽  
Abayomi Yusuf Oyewale ◽  
Olufemi Adedotun Yesufu
Keyword(s):  
Willingness To Pay ◽  
Consumer Preferences ◽  
Sampling Technique ◽  
Hedonic Pricing ◽  
Primary Data ◽  
Price Premium ◽  
Price Variation ◽  
Cowpea Varieties ◽  
Breeding Programmes ◽  
Almost All

Analysis of consumer preferences for cowpea varieties in Osun State was carried out with a view to identifying attributes that determine price variation among cowpea varieties and the effect on consumer’s willingness to pay for those varieties. A multistage sampling technique was used to randomly select 240 respondents for the study, comprising 180 cowpea consumers and 60 retailers. Primary data were collected on cowpea varieties, their attributes and the consumer’s willingness to pay for cowpea varieties using well structured questionnaire. Data collected were analysed using both descriptive and inferential statistics. The results showed that out of thirteen varieties found in the area, only nine varieties of cowpea were common in the market. The quality of each variety differs which explained variation in their price. In terms of preference the Oloyin variety is preferred most by 78% of consumers. Weevil resistance had the highest rank among the cowpea attributes. Oloyin had the highest WTP followed by Milk and Drum with ₦303, ₦237 and ₦213 per kg, respectively. Hedonic pricing methods provide a statistical estimate of premiums and discounts for cowpea attributes. Results indicated that weevil resistance was the most important attribute to consumer. Cowpeas with weevil damage tolerance, brown colour, large grain size and short cooking time commanded price premium for almost all the varieties. The consumer discounted prices for insect damage, small size, white colour, smooth skin and grain colour mixed together. The study concludes on the need for breeders and research institutes to incorporate these cowpea attributes that attracted price premium into their cowpea breeding programmes.

Do health benefits explain the price premiums for organic foods?

2000 ◽  
Vol 15 (1) ◽  
pp. 9-18 ◽  
Author(s):  
Fred Kuchler ◽  
Katherine Ralston ◽  
J. Robert Tomerlin
Keyword(s):  
Health Outcome ◽  
Consumer Preferences ◽  
Health Benefits ◽  
Organic Food ◽  
Adverse Health Outcome ◽  
Price Premiums ◽  
Adverse Health ◽  
The Cost ◽  
Typical Consumer ◽  
Value Of Health

AbstractThis paper examines whether the dollar value of health benefits that consumers derive from organic food could account for the price premiums they pay. Price and sales data from realized transactions are inadequate to reveal consumer preferences for health benefits. Our exploratory alternative method estimates the value of health benefits to a hypothetical consumer who assesses risks as risk assessors do and values a unit reduction in all fatal risks equally, regardless of the source of any risk. Under these assumptions, our estimates of the value of health benefits derived from substituting an organic diet for a conventionally produced diet approach zero. For a common organic product, apple juice, we estimated the cost of reducing risks by buying the organic characteristic. The cost of averting each adverse health outcome is 27 to 461 times as large as the value of benefits. If the characteristics of our hypothetical consumer match those of the typical consumer, two inferences follow from our estimates of benefits and costs. First, the typical consumer is unlikely to purchase organic food for health reasons. Second, consumers who choose organic food could differ from typical consumers in several dimensions: perceptions of the level of risk from dietary intake of pesticides, perceptions of the nature of adverse health outcomes from pesticides, or in the importance attached to other attributes of organic food. Our analysis is exploratory partially because there are several behavioral assumptions implicit in the values we calculate. Also, we focus on risks that can be quantitatively estimated, measuring the probability of an adverse health outcome with readily accessible data. Currently, only cancer risks can be measured in terms of probabilities from readily accessible data.

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