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.
Consumer reactions to organic food price premiums in the United States