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Claims about environmental impact, health effects and taste of food products are restricted in the EU. The purpose of this paper is to quantify how much such claims would…
Claims about environmental impact, health effects and taste of food products are restricted in the EU. The purpose of this paper is to quantify how much such claims would change the willingness to pay (WTP) for organic products in Croatia.
For estimating the WTP under different claims the authors used an experimental auction. Participants (258) bid for real food products (organic and conventional tomatoes and apples) and are endowed with cash at a location where they usually go shopping.
For the sample the authors find that consumers are willing to pay on average a premium of 42 percent for organic apples and 59 percent for organic tomatoes. On top of that, WTP increases between 16-20 percent for environmental claims and 12 percent for health claims. Taste-related claims are not significant.
Sellers and producers of organic food can benefit from adding claims to organic labels. To protect consumers from manipulation, regulators are well advised to be cautions when allowing claims about credence attributes of food.
The authors quantify the influence of claims about organic products on the WTP by using experimental auctions which are particularly suitable to investigate effects which cannot be observed on the market.
The purpose of this paper is to evaluate consumers’ willingness to pay (WTP) for composite flour bread produced with a blend of 15-40 per cent cassava flour blended with…
The purpose of this paper is to evaluate consumers’ willingness to pay (WTP) for composite flour bread produced with a blend of 15-40 per cent cassava flour blended with wheat flour in Ghana.
The analysis is based on interviews with 350 consumers in the Ashanti and Eastern Regions of Ghana to assess their awareness, perceptions and WTP for cassava-wheat composite bread. From these consumer interviews, a hedonic regression model was applied to evaluate consumers’ WTP for various attributes of composite flour bread. Price-related and health-related perceptions of consumers on cassava-wheat composite bread were investigated with perception indices. Multi-attribute preference-based contingent ratings that rate product attributes in terms of importance to consumers was employed. The implicit prices of the product attributes representing the contribution of the product attributes to the WTP amount were also computed.
The paper finds that consumers who are aware of cassava-blended flour bread and who like its taste and texture are willing to pay more than consumers who are unaware. This leads to a policy recommendation advocating increased advertising of the economic and nutritional benefits of cassava-wheat blended composite flour bread.
Future studies should explore the choice experiments to examine preferences for the food product.
This paper evaluates consumers’ WTP for composite flour bread produced with a blend of 15-40 per cent cassava flour and wheat flour. Given widespread reliance on imported wheat flour and the simultaneously large volumes of locally available cassava, it is important to consider opportunities for import substitution (and possible cost reduction for consumers) of blended flour products such as cassava-wheat composite flours. Nigeria has imposed a 10 per cent blending requirement for this reason. Ghana has taken important measures recently for the development of high-quality cassava flour, and so research on its potential and actual uptake is welcomed and highly relevant to food security and agribusiness development.