Consumers’ willingness to pay for organic agriculture products: a case study of Nepalgunj city, Banke

Year 2019, Volume: 3 Issue: 2, 58 - 61, 28.06.2019

Anish Shrestha Samata Baral

https://doi.org/10.31015/jaefs.2019.2.2

Cited By: 2

Abstract

This study was carried in Nepalgunj Sub-Metropolitan City,
Nepal to understand awareness of consumers’ about organic product, consumers’
willingness to pay for organic products and socio-economic factors affecting
their decision of willingness to pay for consumption of organic goods. Total of
200 respondents were selected as sample population. Among total respondents,
85.5% of respondent were aware about organic products, among which only 53%
respondents were well informed about organic products and their importance. Out
of 200 randomly selected respondents only 114 respondents were willing to pay
addition cost or price premium for organic products. Among ten socioeconomic
variables listed only seven variables found to be determinant of willingness to
pay premium price for organic agricultural products, which are gender, occupation,
income level and education of respondents, and awareness about chemical residue
absence in organic agriculture products, perception of higher nutrition on
organic products and awareness about health benefit from organic products. Result
showed that income level and health consciousness are two most important
determining factor.  So, there is a need
to find a way so that more and more people can be made aware about organic
agricultural products and provide organic products at reasonable price
premium. 

 

Keywords

Consumer preference, Organic agriculture, Socioeconomic, Willingness to pay

References

• Amirnejad, H., & Tonakbar, P. (2015). The Willingness to Pay for Organic Milk by Consumers in Tehran. Journal of Agriculture Science and Technology, 17, 1685-1694.
• Behera, K., Alam, A., Vats, S., Sharma, H., & Sharma, V. (2012). Organic Farming History and Techniques. Sustainable Agriculture Reviews, 8(1), 287-328.
• De Ponti, T., Rijk, B., & Ittersum, M. (2012). The Crop Yield Gap between Organic and Conventional Agriculture. Agriculture System, 108, 1-9.
• Issaka, Y., Antwi, M., & Tawia, G. (2016). A Comparative Analysis of Productivity among Organic and Non-Organic farms in the West Mamprusi District of Ghana. Agriculture, 6(13), 1-10.
• Madhavaiah, C., & Shashikiran, L. (2015). Impact of Socio Economic Factors on Purchase Behaviour of Organic Food Products. International Journal of Economics and Business Administration, 1(2), 82-86.
• Meena, R., Meena, H., & Meena, R. (2013). Organic Farming: Concept: Concept and Components. Popular Kheti, 1(4), 5-14.
• Owusu, V., & Anifori, M. (2016). Consumer Willingness to Pay a Premium for Organic Fruit and Vegetable in Ghana. International Food and Agribusiness Management Review, 16(1), 67-87.
• Rani, S., Shah, H., Habib, N., & Khan, M. (2018). Consumers’ Preferences and Willingness to Pay for Organic Vegetables in Islamabad, Pakistan. Sarhad Journal of Agriculture, 34(3), 494-499.
• Rock , B., Suriya, J., Vijay, B., Thalha, N., Elango, S., & Rajajeyakumar, M. (2017a). Organic Food and Health: A Systematic Review. Journal of Community Medicine & Health Education, 7(3), 1-7.
• Rock, B., Puhalenthi, K., Vishnupriya, S., Pavithra, R., Supriya, A., & Gayathri, K. (2017b). A Study on Awareness of Organic Food Products in Trichy District. International Journal of Community Medicine and Public Health, 4(12), 4490-4494.
• Savage, S. (2015). The Lower Productivity Of Organic Farming: A New Analysis And Its Big Implications. Retrieved from Forbes: https://www.forbes.com/sites/stevensavage/2015/10/09/the-organic-farming-yield-gap/#3fc3d8a65e0e
• Shrestha, A. (2018). Study of Production Economics and Production Problems of Honey in Bardiya District, Nepal. Sarhad Journal of Agriculture, 34(2), 240-245.
• Shrestha, A., & Baral, S. (2018a). Socioeconomic Factors Affecting Awareness and Adaption of Climate Change: A Case Study of Banke District Nepal. Earth Science Malaysia, 2(2), 20-24.
• Shrestha, A., & Baral, S. (2018b). Socioeconomic Factors Affecting Awareness and Adaption of Climate Change: A Case Study of Banke District Nepal. Azarian Journal of Agriculture, 5(3), 96-102.
• Shrestha, A., Sapkota, B., Regmi, R., & Dhungana, S. (2018). Economics of Production and Marketing of Banana in Chitwan District, Nepal. Azarian Journal of Agriculture, 5(1), 12-19.
• Sriwaranun, Y., Gan, C., Lee, M., & Cohen, D. (2015). Consumers’ willingness to pay for organic products in Thailand. International Journal of Social Economics, 42(5), 480-510.
• Vapa-Tankosic, J., Ignjatijevica, S., Kranjac, M., Lekic, S., & Prodanovic, R. (2018). Willingness to Pay for Organic Products on the Serbian Market. International Food and Agribusiness Management Review.
• Worthington, V. (2001). Nutritional quality of organic versus conventional. Journal of Alternate Complementary Medicine, 7, 161-163.