No abstract

No abstract

Demand for value-added products is highly segmented among different types of consumers. In this article, we assess consumer preferences for local, organic, and GMO-free potatoes in order to discover their potential niche markets. We identify sociodemographic characteristics that affect consumer preferences and compare the effects of different attributes on consumers' willingness to pay. Results suggest that the attribute "Colorado grown" carries a higher willingness to pay than organic and GMO-free attributes.JEL Classifications: D12, Q13The recent farming crisis nationwide associated with declining commodity prices and w e a t h e r -r e l a t e d yield p r o b l e m s h a s forced farmers to find new markets for their commodities through value-added marketing. To discover the right niche market is a complicated task because demand is highly segmented among consumers who may be concerned with different attributes (such as local, organic, eco-labeling, and other specialty types). Baker deals with the case of market segmentation for apples, showing that there are different types of apple consumers, from those who are strongly concerned about food safety to those who are extremely price sensitive. The current study uses contingent valuation

Farmers and other producers are responding to consumer concerns about pesticides by creating new marketing opportunities for products grown with environmentally sound practices. The eco-label analyzed in this study is certified by The Food Alliance (TFA), a non-profit third-party certifying organization based in Portland, Oregon. We assess the mean willingness to pay (WTP) for eco-labeled apples using a double-bounded logit model. We conclude that female respondents with children, and strong environmental and food safety concerns are more likely to pay a premium for eco-labeled apples. However, the estimated premium is small (about 5 cents per pound over an initial price of 99 cents), reflecting the overall difficulty with garnering a premium based on "environmentally sound" practices.

In this paper, we assess consumer willingness to pay for a mandatory country-of-origin labeling (COOL) program applied to beef ribeye steaks, chicken breasts, and pork chops, all labeled as “Certified U.S.” products. A consumer survey was mailed in spring and early summer 2003 to households in the continental United States. Results indicate that consumers are in general very concerned about food safety issues, viewing U.S. meat as the safest among the selection of countries considered. Nevertheless, consumer willingness to pay for Certified U.S. products is relatively small, although above the expected implementation costs associated with a mandatory labeling program. This finding coincides with the fact that only 36% of the sample favored consumers paying directly for the costs related to a mandatory COOL program.