25 pages, We examine consumer willingness to pay (WTP) for foods packaged using active packaging which can be used to improve quality, shelf life, or safety of a range of products, potentially reducing the use of food additives (preservatives) and food waste. We administer an experimental survey of US food consumers (n = 2325) with five treatments. The surveys include contingent valuation exercises to assess consumer WTP for six products in active packaging relative to conventional packaging. We find that consumer acceptance of this technology is dependent on the product packaged and related directly to the specific relative benefit. In addition, consumer WTP is impacted by the framing of the technology in relation to other available technologies, information about the developer of the technology, and the degree of specificity of information regarding benefits. Notably, impacts of framing and use cases are primarily apparent among those who are resistant to the technology. A cluster analysis finds that those more likely to resist the technology include households that are lower income, less educated, and more likely to be white [EconLit citations: Q18, M31, D12, D83].
24pgs, Increasingly, the health claims made by food products focus on the marketing of specific molecular enrichments. Research exploring consumers’ willingness to pay (WTP) for health claims assumes that individuals hold perfect information on the benefits of the enrichment, and that their valuations depend solely on whether or not they need to improve their health. While health interventions are aimed at individuals at higher health risk, consumers may be unaware of the health risks that they face, limiting the effectiveness of a generic targeting strategy. Using an orthogonal experimental design, we explore the impact of two factors on the WTP for vitamin D enrichment in eggs: whether the information is person-specific or generic; and the presence of a health claim explaining the vitamin D enrichment. Results indicate that it is the provision of information, not the health claim, that influences WTP. Both generic and personalised information lead to similar increases in the WTP for vitamin D enrichment. While we only observe a direct effect of generic information on the WTP for vitamin D enrichment, personal information may also operate by increasing the perceived risk of vitamin D deficiency. Our results support the use of personalised health information during the choice task as a means of increasing the sales of healthy products.
15pgs, Research has suggested to not solely include cognitive processes but also affective processes in economic choice modeling. Studying Medjool dates, we conducted a laboratory experiment combining choice experiments and eye-tracking to account for cognitive processes. In addition, participants indicated their level of worry related to production practices to account for affective processes. Our results show that consumers worry more about pesticide residues than genetic modification in foods. They also pay more attention to labels related to these production practices compared to other labels; and the production practice labels received the highest willingness to pay (WTP). Results from linear regressions show that both cognitive and affective processes are associated with WTP. Especially in the full model for WTP for pesticide-free labeling an increase of attention by 1 s increases WTP on average by $0.10 and an increase of the level of worry from one category to the next increases WTP on average by $0.17. Overall, results show that including both cognitive and affective processes as explanatory variables is important when determining factors associated with WTP.
13 pages, In Ghana, groundwater, accessed through wells and boreholes, is generally unregulated and may be contaminated with pollutants including excess nitrates from agricultural chemical fertilizers. Yet, studies estimating how clean groundwater is valued are not available in Ghana. In addition, some research suggests that the pre-experiment information provided to survey respondents affects their valuation of an identical outcome. This paper estimates smallholder farmers’ preferences for groundwater protection using pre-experiment information focused on one of two outcomes: environment or health. The double-bounded contingent valuation (DBCV) approach is used to estimate willingness to pay (WTP) to protect groundwater quality. The estimation accounts for shift and anchoring effects, which are common issues with the DBCV method. The mean WTP from the health (environmental) information subsample is about US$19 (US$17) per acre, and the values are significantly different between the information conditions. The findings shed light on the importance of using precise information in eliciting WTP in a developing country setting.
29 pages., Findings of a survey among consumers indicated that consumers recognize different kinds of functional foods, are willing to pay a premium for their purchase, and perceive possible health value. However, they appeared anxious about the health benefits these foods communicate in their labels.
6 pages., via online journal., Sustainable agriculture is spreading in Japan in response to growing concerns about the environmental burden of the agriculture sector, but less than 1% of the total crop area for each vegetable in Japan is grown sustainably. Environmentally friendly agricultural products are produced by using organic and low-input farming techniques; low-input farming aims to reduce chemical inputs, such as fertilizers, pesticides, and herbicides, by half. Here, we used komatsuna (Japanese mustard spinach, Brassica rapa var. perviridis) as a model vegetable to study the environmental impact of low-input farming and ways to promote the purchase of organically and low-input farmed vegetables. We first assessed greenhouse gas emissions resulting from organic, low-input, and conventional farming of komatsuna. We also evaluated the effectiveness of providing consumers with detailed farm management and seasonality information to market organically and low-input farmed vegetables. We estimated marginal willingness-to-pay (MWTP) using choice-based conjoint analysis, based on attributes of price, fertilizer use, pesticide use, and region of origin. For seasonality, the questionnaire incorporating these attributes was conducted twice: once assuming purchasing in season, the other out of season. The greenhouse gas emissions of organic farming per area (196.7 kg CO2-eq/10 a/year) and per yield (72.3 kg CO2-eq/t/year) were less than those of low-input (322.6 kg CO2-eq/10 a/year, 120.7 kg CO2-eq/t/year) and conventional (594.0 kg CO2-eq/10 a/year, 220.7 kg CO2-eq/t/year) farming. MWTPs were highest for pesticide-free komatsuna (76.9 yen out of season, 66.2 yen in season), followed by full organic fertilizer (66.0 yen out of season, 63.4 yen in season), half organic fertilizer (35.8 yen out of season, 19.8 yen in season), and half pesticide (29.2 yen out of season, 21.0 yen in season). Consumers showed greater preference for organically and low-input farmed komatsuna out of season than in season. Consumers were more interested in pesticide information than in fertilizer and region of origin information. Our findings suggest that providing detailed cultivation and seasonality information would be a beneficial consumer communication tool to increase the market for sustainable agricultural products.
16 pages., via online journal., Fraudulent activities in the international honey market affect 10% of food, and cost the global food market $50 billion per annum. Although many developed countries have created regulations to combat food fraud, illegally imported honey, especially originating from China, still enters through transshipments and relabelling to mask its true origin. This honey laundering poses a health risk to consumers, as Chinese honey potentially contains illegal and unsafe antibiotics and high levels of herbicides and pesticides. We analyse whether information about the negative health impacts of laundered honey increases the proportion of consumers willing to pay a premium for local fraud‐free honey. Using a laboratory experiment, we find when consumers are given honey laundering information, their willingness to pay a premium for local fraud‐free honey increases by as much as 27 percentage points. Our findings suggest that by conveying honey laundering information and guaranteeing their honey is fraud‐free, producers can potentially increase revenues and reduce the prevalence of food fraud. Our results further show that consumers' preference for various honey characteristics and age also influence the probability of paying a premium for local honey.
15 pages., Article #: 1277838, via online journal., Commercial channels can be non-conventional networks for disseminating agricultural information, especially if farmers are willing to pay for a DVD with
learning videos. Using purposive sampling, we selected retailer and involved them
in selling videos compiled in a DVD. Inside the jacket of DVD, we pasted a sticker
listing a phone number that buyers or video viewers could call for further questions.
We interviewed 341 of the buyers who called that number. After the phone interviews, snowball sampling was used to select 180 farmers for face-to-face interviews
in order to validate the information collected during the telephone interviews and
to understand the behavioural changes triggered by watching the videos. Within
four months of first distributing DVDs to retailers, 80% of the 700 DVDs were sold.
Distributing videos through commercial channels gives a fair chance to everyone to
learn, since the DVDs were sold on the open market at an affordable price. About
84% of the DVDs were sold at 1 USD, suggesting that all of the respondents were
willing to pay for learning DVDs; 86% of respondents said they now spent less
money on pesticides after watching the videos. Private sector actors can become
“new extensionists” and distribute agricultural information to rural populations.
