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Consumer valuation of quality rice attributes in a developing economy: Evidence from a choice experiment in Vietnam

Nguyen H.D. My (Department of Agricultural Economics, Ghent University, Ghent, Belgium) (Faculty of Economics and Development Studies, University of Economics – Hue University, Hue, Vietnam)
Ellen J. Van Loo (Department of Agricultural Economics, Ghent University, Ghent, Belgium)
Pieter Rutsaert (International Rice Research Institute, Manila, Philippines)
Tran Huu Tuan (School of Hospitality and Tourism, Hue University, Hue, Vietnam)
Wim Verbeke (Department of Agricultural Economics, Ghent University, Ghent, Belgium)

British Food Journal

ISSN: 0007-070X

Publication date: 8 May 2018

Abstract

Purpose

The purpose of this paper is to investigate consumers’ willingness to pay for quality rice attributes in urban areas in the South of Vietnam, including organic and integrated pest management (IPM) as sustainable production methods, and claim about health benefits and fair farmer prices.

Design/methodology/approach

Cross-sectional data were collected in 2015 using a survey including a choice experiment (CE) (n=500). Generalized mixed logit models were estimated.

Findings

Vietnamese consumers are willing to pay a premium of 82 percent for organic rice, and 45 percent for rice produced using IPM, compared to conventionally produced rice. They are also willing to pay a premium of 95 percent for rice claiming to be rich in vitamins and other nutrients, and 50 percent for rice that guarantees a fair price to rice farmers.

Research limitations/implications

A hypothetical CE was employed. Future research using revealed preference methods is suggested.

Originality/value

This study makes a significant contribution to the limited existing literature on consumers’ valuation of quality rice attributes in the context of developing countries such as Vietnam. The study shows that rice, that is, sustainably produced using organic or IPM methods provides a promising avenue for rice producers. This study highlights that there is an added value for rice with credence attributes in relation to sustainable production methods, health benefits, and fair farmer prices in a developing country.

Keywords

Acknowledgements

This study has been financed with grants received from UGent-BOF (Ghent University Special Research Fund) and the Swiss Agency for Development and Cooperation (SDC) through the CORIGAP-project entitled “Closing Rice Yield Gaps in Asia with Reduced Environmental Footprint.” The financing received from these organizations is gratefully acknowledged.

Citation

My, N.H.D., Van Loo, E.J., Rutsaert, P., Tuan, T.H. and Verbeke, W. (2018), "Consumer valuation of quality rice attributes in a developing economy: Evidence from a choice experiment in Vietnam", British Food Journal, Vol. 120 No. 5, pp. 1059-1072. https://doi.org/10.1108/BFJ-05-2017-0277

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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