CONSUMER WILLINGNESS TO PAY FOR PESTICIDE-FREE FRESH PRODUCE

Abstract

The study uses primary data collected from a survey conducted in Georgia to analyze consumer preferences for testing and certification of fresh produce and consumers' willingness to pay for fresh produce that is certified as free of pesticide residues (FPR). An ordered probit model was estimated to identify the impacts of various exogenous variables on the probability of consumers' willingness to pay for a number of alternative price premiums. The results indicate that consumers' willingness to pay differs with respect to a number of factors. The study concludes that most of the consumers recommend testing and certification, but they oppose large price markups for certified-FPR fresh produce.