Hostname: page-component-cd9895bd7-gxg78 Total loading time: 0 Render date: 2024-12-24T12:14:14.508Z Has data issue: false hasContentIssue false
  • English
  • Français

Estimates of the willingness to pay for locally grown tree fruits in Cusco, Peru

Published online by Cambridge University Press:  21 June 2017

Trent Blare ,
Jason Donovan  and
Cesar del Pozo
Trent Blare*
Affiliation:
World Agroforestry Centre (ICRAF), Lima, Peru.
Jason Donovan
Affiliation:
World Agroforestry Centre (ICRAF), Lima, Peru.
Cesar del Pozo
Affiliation:
Centro Bartolomé de las Casas (CBC), Cusco, Peru.
*
*Corresponding author: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

Urbanization, changes in the retail sector and economic growth in developing countries may offer new opportunities to build connections between urban consumers and nearby farmers. The design of strategies to build such connections will require deeper insights into the food preferences of urban consumers. This paper presents a choice experiment of the preference of locally grown apples, avocados and pears vis-à-vis nonlocal equivalents with 300 consumers in a traditional market in Cusco, Peru. Willingness-to-pay estimates are derived from a multinomal logit analysis. We found that consumers who are younger and more educated and those with young children tend to be willing to pay more for locally produced apples, avocados and pears. The paper concludes with a discussion on the implications of the research for advancing efforts to localize food systems in developing countries and opportunities for future research.

Keywords

urban food systemsLatin Americamiddle income countriesconsumer preferenceshealthy dietsfood policy
Type
Research Paper
Information
Renewable Agriculture and Food Systems , Volume 34 , Issue 1 , February 2019 , pp. 50 - 61
Copyright
Copyright © Cambridge University Press 2017 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Allen, P. 2010. Realizing justice in local food systems. Cambridge Journal of Regions, Economy and Society 2010:rsq015.Google Scholar
Alpízar, F., Carlsson, F., and Martinsson, P. 2001. Using Choice Experiments for Non-market Valuation. Work Paper in Economics. Number 52. Department of Economics, Göteborg University, Gothenberg, Sweden.Google Scholar
Altieri, M. and Toledo, V.M. 2011. The agroecological revolution in Latin America: Rescuing nature, ensuring food sovereignty and empowering peasants. Journal of Peasant Studies 38(3):587–612.Google Scholar
Aryal, K.P., Chaudhary, P., Pandit, S., and Sharma, G. 2009. Consumers’ willingness to pay for organic products: A case from Kathmandu Valley. Journal of Agriculture and Environment 10:15–26.Google Scholar
Asfaw, S., Mithöfer, D., and Waibel, H. 2010. What impact are EU supermarket standards having on developing countries' export of high-value horticultural products? Evidence from Kenya. Journal of International Food & Agribusiness Marketing 22(3–4):252–276.Google Scholar
Bennett, R., Kerrigan, F., O'Reilly, D., Lee, Z., and Sargeant, A. 2011. Dealing with social desirability bias: An application to charitable giving. European Journal of Marketing 45:703–719.Google Scholar
Bigio, R.S., Verly Junior, E.I., de Castrol, M.A., Galvão César, C.L., Fisberg, R.M., and Lobo Marchioni, D.M. 2011. Determinants of fruit and vegetable intake in adolescents using quantile regression. Revista Saúde Pública 45:3.Google Scholar
Bogomolova, S., Loch, A., Lockshin, L., and Buckley, J. 2016. Consumer factors associated with purchasing local versus global value chain foods. Renewable Agriculture and Food Systems 33:33–46.Google Scholar
Boyle, K.J., Bishop, R.C., and Welsh, M.P. 1985. Starting point bias in contingent valuation bidding games. Land Economics 61:188–194.Google Scholar
Brown, C. 2003. Consumers’ preferences for locally produced food: A study in southeast Missouri. American Journal of Alternative Agriculture 18(4):213–224.Google Scholar
Carpio, C.E. and Isengildina-Massa, O. 2009. Consumer willingness to pay for locally grown products: The case of South Carolina. Agribusiness 25(3):412–426.Google Scholar
Cernansky, R. 2015. Super vegetables. Nature 522(7555):146–148.Google Scholar
Champ, P.A., Moore, R., and Bishop, R.C. 2004. Hypothetical bias: The mitigating effects of certainty questions and cheap talk. In 2004 Annual Meeting, August 1–4, Denver, CO (No. 19951). American Agricultural Economics Association.Google Scholar
Cleveland, D., Carruth, A., and Mazaroli, D. 2015. Operationalizing local food: Goals, actions and indicators for alternative food systems. Agriculture and Human Values 32(2):281–297.Google Scholar
Darby, K., Batte, M.T., Ernst, S., and Roe, B. 2008. Decomposing local: A conjoint analysis of locally produced foods. American Journal of Agricultural Economics 90(2):476–486.Google Scholar
Delgado, C. 2003. Rising consumption of meat and milk in developing countries has created a new food revolution. The Journal of Nutrition 133(11):3907S–3910S.Google Scholar
Diamond, P.A. and Hausman, J.A. 1994. Contingent valuation: Is some number better than no number? Journal of Economic Perspectives 8(4):45–64.Google Scholar
El Comercio. 2014. Cusco Tuvo Crecimiento Más Alto del Mundo en Últimos 5 Años: El Instituto Peruano de Economía Revela que la Expansión Acumulada del PBI Real de la Región desde el 2008 Supera a China. Available at Web site http://elcomercio.pe/sociedad/cusco/cusco-tuvo-crecimiento-mas-alto-mundo-ultimos-5-anos-noticia-1727172.Google Scholar
Feagan, R. 2007. The place of food: Mapping out the ‘local’ in local food systems. Progress in Human Geography 31(1):23–42.Google Scholar
Feenstra, G. 1997. Food systems and sustainable communities. American Journal of Alternative Agriculture 12(1):28–36.Google Scholar
Freidberg, S. and Goldstein, L. 2011. Alternative food in the global south: Reflections on a direct marketing initiative in Kenya. Journal of Rural Studies 27(1):24–34.Google Scholar
Garcia-Yi, J. 2015. Willingness to pay for organic and fairtrade certified yellow chili peppers: Evidence from middle and high income districts in Lima, Peru. British Food Journal 117(2):929–942.Google Scholar
Gelli, A., Hawkes, C., and Donovan, J. 2016. Value chains and nutrition: Exploring the opportunities for improving nutrition. In Prichard, B., Ortiz, R., and Shekar, M. (eds). Routledge Handbook on Food and Nutrition Security. Routledge, New York.Google Scholar
Gracia, A., De Magistris, T., and Nayga, R.M. 2012. Importance of social influence in consumers’ willingness to pay for local food: Are there gender differences? Agribusiness 28:361–371.Google Scholar
Grebitus, C., Lusk, J.L., and Nayga, R.M. 2013. Effect of distance of transportation on willingness to pay for food. Ecological Economics 88:67–75.Google Scholar
Gomez, M. and Ricketts, K. 2013. Food value chain transformations in developing countries: Selected hypotheses on nutritional implications. Food Policy 42(2013):139–150.Google Scholar
Hanemann, M.W. 1984. Discrete/continous models of consumer demand. Econometrica 52(3):541–561.Google Scholar
Herriges, J.A. and Shogren, J.F. 1996. Starting point bias in dichotomous choice valuation with follow-up questioning. Journal of Environmental Economics and Management 30:112–131.Google Scholar
Hinrichs, C. 2000. Embeddedness and local food systems: Notes on two types of direct agricultural market. Journal of Rural Studies 16(3):295–303.Google Scholar
Instituto Nacional de Estadística e Informática (INEI). 2013. Resultados Definitivos: IV Censo Nacional Agropecuario 2012. Lima, Peru.Google Scholar
Instituto Nacional de Estadística e Informática (INEI). 2014. Ecuensta de hogares sobre condiciones de vida y pobreza 2014. Available at Web site http://www.ilo.org/surveydata/index.php/catalog/1067/study-description.Google Scholar
Instituto Nacional de Estadística e Informática (INEI). 2015a. Economía. Available at Web site http://www.inei.gob.pe/estadisticas/indice-tematico/economia/.Google Scholar
Instituto Nacional de Estadística e Informática (INEI). 2015b. Población y Vivienda. Available at Web site http://www.inei.gob.pe/estadisticas/indice-tematico/poblacion-y-vivienda/.Google Scholar
Karp Resources. 2012. The Louisville local food demand analysis. Seed capital Kentucky. Available at Web site http://seedcapitalky.org/wp-content/uploads/2015/01/SCKY-Demand_Study_Full_Report.pdf.Google Scholar
Kharas, H. 2010. The emerging middle class in developing countries. OECD Development Centre. Working Paper No. 285. Available at Web site https://www.oecd.org/dev/44457738.pdf.Google Scholar
Kimokati, R.W. and Millen, B.E. 2011. Diet, the global obesity epidemic and prevention. Journal of the American Dietetic Association 111:1137–40.Google Scholar
Landenburg, J. and Olsen, S.B. 2008. Gender-specific starting point bias in choice experiments: Evidence from an empirical study. Journal of Environmental Economics and Management 56:275–285.Google Scholar
Lee, J., Gereffi, G., and Beauvais, J. 2012. Global value chains and agrifood standards: Challenges and possibilities for smallholders in developing countries. Proceedings of the National Academy of Sciences 109(31):12326–12331.Google Scholar
Loureiro, M.L. and Hine, S. 2002. Discovering niche markets: A comparison of consumer willingness to pay for local (Colorado grown), organic and gmo-free products. Journal of Agricultural and Applied Economics 34(3):477–488.Google Scholar
Loureiro, M.L. and McCluskey, J.J. 2000. Assessing consumer response to protected geographical identification labeling. Agribusiness 16(3):309–320.Google Scholar
Martinez, M.G. and Poole, N. 2004. The development of private fresh produce safety standards: Implications for developing mediterranean exporting countries. Food Policy 29(3):229–255.Google Scholar
Martinez-Zuniga, S.M. 2007. Cultural factors affecting food preference: The case of tarwi in three Quechua speaking areas of Peru. Master's thesis, Vanderbilt University, Nashville, Tennessee.Google Scholar
McFadden, D. 1984. Econometric analysis of qualitative response models. In Griliches, Z. and Intriligator, M.D. (eds.) Vol. 2 of Handbook of Econometrics. Elsevier, Amsterdam. p. 1395–1457.Google Scholar
Mergenthaler, M., Weinberger, K., and Qaim, M. 2009a. Consumer valuation of food quality and food safety attributes in Vietnam. Applied Economic Perspectives and Policy 31(2):266–283.Google Scholar
Mergenthaler, M., Weinberger, K., and Qaim, M. 2009b. The food system transformation in developing countries: A disaggregate demand analysis for fruits and vegetables in Vietnam. Food Policy 34(5):426–436.Google Scholar
Mohammed, E.Y. 2012. Contingent valuation responses and hypothetical bias: Mitigation effects of certainty question, cheap talk, and pledging. Environmental Economics 3(3):62–71.Google Scholar
Montgomery, M.R. 2008. The urban transformation of the developing world. Science 319(5864):761–764.Google Scholar
Murphy, J.J. and Stevens, T.H. 2004. Contingent valuation, hypothetical bias, and experimental economics. Agricultural and Resource Economics Review 33(2):182–192.Google Scholar
Murphy, J.J., Allen, P.G., Stevens, T.H., and Weatherhead, D. 2005. A meta-analysis of hypothetical bias in stated preference valuation. Environmental and Resource Economics 30:313–325.Google Scholar
Penny, M.E., Meza, K.S., Creed-Kanashiro, H.M., Marin, R.M., and Donovan, J. 2016. Fruits and vegetables are incorporated into home cuisine in different ways that are relevant to promoting increased consumption. Material and Child Nutrition. doi: 10.1111/mcn.12356.Google Scholar
Piyasiri, A.G.S.A. and Ariyawardana, A. 2002. Market potentials and willingness to pay for selected organic vegetables in Kandy. Sri Lankan Journal of Agricultural Economics 4(1):107–119.Google Scholar
Popkin, B. 2014. Nutrition, agriculture and the global food system in low and middle income countries. Food Policy 1(2014):91–96.Google Scholar
Prigo, R. (ed.). 2003. Ecolabel Value Assessment Consumer and Food Business Perceptions of Local Foods. Leopold Center for Sustainable Agriculture and the Iowa State University Business Analysis Laboratory, Ames, Iowa.Google Scholar
Rasmussen, M., Krølner, R., Klepp, K.I., Lytle, L., Brug, J., Bere, E., and Due, E. 2006. Determinants of fruit and vegetable consumption among children and adolescents: A review of the literature. Part I: Quantitative studies. International Journal of Behavioral Nutrition and Physical Activity 3:22.Google Scholar
Reardon, T., Timmer, C.P., Barrett, C., and Berdequé, J. 2003. The rice of supermarkets in Africa, Asia and Latin America. American Journal of Agricultural Economics 85(5):1140–1146.Google Scholar
Reynolds, C., Buckley, J., Weinstein, P., and Boland, J. 2014. Are the dietary guidelines for meat, fat, fruit and vegetable consumption appropriate for environmental sustinability: A review of the literature. Nutrients 6:2251–2265.Google Scholar
Roitner-Schobesberger, B., Darnhofer, I., Somsook, S., and Vogl, C. 2008. Consumer perceptions of organic foods in Bangkok, Thailand. Food Policy 33(2):112–121.Google Scholar
Rosset, P. 2008. Food sovereignty and the contemporary food crisis. Development 51(4):460–461.Google Scholar
Schneider, M.L. and Francis, C.A. 2005. Marketing locally produced foods: Consumer and farmer opinions in Washington County, Nebraska. Renewable Agriculture and Food Systems 20(4):252–260.Google Scholar
Skuras, D. and Vakrou, A. 2002. Consumers’ willingness to pay for origin labelled wine: A Greek case study. British Food Journal 104(11):898–912.Google Scholar
Svenfelt, Å. and Carlsson-Kanyama, A. 2010. Farmers’ markets–linking food consumption and the ecology of food production? Local Environment 15(5):453–465.Google Scholar
Swinburn, B.A., Sacks, G., Hall, K.D., McPherson, K., Finegood, D.T., Moodie, M.L., and Gortmaker, S.L. 2011. The global obesity pandemic: Shaped by global drivers and local environments. Lancet 378:804–14.Google Scholar
Torjusen, H., Lieblein, G., Wandel, M., and Francis, C.A. 2001. Food system orientation and quality perception among consumers and producers of organic food in Hedmark County, Norway. Food Quality and Preference 12(3):207–216.Google Scholar
Tschirley, D., Reardon, T., Dolislager, M., and Snyder, J. 2015. The rise of the middle class in East and Southern Africa: Implications for food system transformation. Journal of International Development 27(5):628–646.Google Scholar
UN Economic Commission for Latin America & the Caribbean (ELAC). 2010. What Kind of State? What Kind of Equality? Available at http://repositorio.cepal.org/bitstream/handle/11362/16527/S1000328_en.pdf;jsessionid=BED1ADE48CCA73E35E99A1A962488669?sequence=1.Google Scholar
United Nations, Department of Economic and Social Affairs, Population Division (UNDESA). 2014. World urbanization prospects: The 2014 revision, highlights. ST/ESA/SER.A/352.Google Scholar
Unnevehr, L.J. 2000. Food safety issues and fresh food product exports from LDCs. Agricultural Economics 23(3):231–240.Google Scholar
Venkatachalam, L. 2004. The contingent valuation method: A review. Environmental Impact Assessment Review 24:89–124.Google Scholar
Wang, Z., Mao, Y., and Gale, F. 2008. Chinese consumer demand for food safety attributes in milk products. Food Policy 33(1):27–36.Google Scholar
Weatherell, C., Tregear, A., and Allinson, J. 2003. In search of the concerned consumer: UK public perceptions of food, farming and buying local. Journal of Rural Studies 19(2):233–244.Google Scholar
World Bank. 2016. Education Attainment. Database. 18 Oct 2016. Available at Web site http://iresearch.worldbank.org/edattain/.Google Scholar