Consumers’ willingness-to-pay for organic conversion-grade food: Evidence from five EU countries

By CostBenefit on Jul 10, 2009 | In Europe, Academic Study/Journal Article, Agriculture, Forestry and Food, Regulatory Analysis, Contingent Valuation, Surveys,.., Costs and Benefits

Link: http://dx.doi.org/10.1016/j.foodpol.2009.03.001

Abstract: In recent years, in overall value, the EU has become a net importer of organic food to supply increasing demand. Financial support for farmers during the conversion period has been made to help expand organic production as this was seen as a barrier to conversion. Meanwhile, farmers have been marketing products produced in this conversion period and labelled as such, the extent to which is described here for the UK, Portugal, Denmark, Ireland and Italy. Consumers’ attitudes towards, and willingness-to-pay for, conversion-grade food in these countries is examined. It was found that consumers would be prepared to pay a premium for conversion-grade produce of around half the premium for organic produce with vegetables attracting a higher premium than meat. Finally, the potential of policies for marketing conversion-grade products to encourage more conversion is examined, together with barriers to achieving this. It is concluded that barriers to marketing such products, particularly from retailers, will be formidable. Thus, alternative policies are suggested.

Keywords: Organic conversion-grade food; Willingness-to-pay; Marketing; Denmark, Ireland, Italy, Portugal and the UK

by R.B. Tranter 1, R.M. Bennett 1, L. Costa 2, C. Cowan 3, G.C. Holt 4, P.J. Jones 1, M. Miele 4, M. Sottomayor 2 and J. Vestergaard 5
1. Centre for Agricultural Strategy, University of Reading, P.O. Box 237, Reading RG6 6AR, UK
2.Faculty of Economics and Management, The Portuguese Catholic University, Centre Regional do Porto, Rua Diogo Botelho1327, 4169-005 Porto, Portugal
3.Ashtown Food Research Centre, Teagasc, Ashtown, Dublin 15, Ireland
4. School of City and Regional Planning, University of Cardiff, King Edward VII Avenue, Cardiff CF10 3WA, UK
5. Department of Management, Aarhus School of Business, University of Aarhus, Fuglesangs Allé 4, DK-8210 Aarhus V, Denmark

Food Policy via Elsevier Science Direct www.ScienceDirect.com
Volume 34, Issue 3, June 2009, Pages 287-294
Special IssueL Development of organic farming policy in Europe

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