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Abstract
Throughout these last years, organic agriculture has
undergone a remarkable expansion due, among other things, to
the greater interest shown by consumers aware of food safety
concerns involving real or perceived quality risks [1].
This paper aims to estimate consumers’ willingness to pay
(WTP) for organic food products available in the Argentinean
domestic market, with a view to providing some useful insights to
gain support and outline strategies for promotion of organic
production, marketing, regulation, and labelling programs of
organic food products.
A Binomial Multiple Logistic Regression model is estimated with
data from a food consumption survey conducted in Buenos Aires
city, Argentina, in April 2005.
The Contingent Valuation Method was chosen in order to
calculate their WTP for five organic selected products: Regular
Milk, Leafy Vegetables, Whole Wheat Flour, Fresh Chicken and
Aromatic Herbs.
The empirical results reveal that consumers are willing to pay a
premium for these products and that although prices play an
important role, lack of store availability and of a reliable
regulatory system to mitigate quality risks constraint
consumption of organic products in this country.