Comparing Consumer's WIllingness to Pay for Conventional, Non-Certified Organic and Organic Milk from Small and Large Farms

Abstract

Considering local milk, data from auction experiments was used to determine whether farm size affects consumer willingness to pay (WTP) for conventional, non-certified organic, and organic versions. Tobit models including socio-demographics and variables from the theory of planned behavior were used to examine WTP for each. While farm size was insignificant for each type, WTP for large farm non-certified organic was not higher than small farm conventional. Further, WTP for small farm non-certified organic was not significantly less than large farm organic. Small farms could potentially use these differences in attempts to compete with large farms.