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Consumer Willingness to Pay for Locally Grown Produce Designed to Support Local Food Banks and Enhance Locally Grown Producer Markets

Author

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  • Willis, David B.
  • Carpio, Carlos E.
  • Boys, Kathryn A.
  • Young, Emily D.

Abstract

This study investigates the possibility of using local food banks as a distributor in the local food supply chain. A mixed logit model is used to estimate the price premium consumers are willing to pay at retail outlets for locally grown products, if consumers have knowledge that a portion of the purchase price will be used as a donation to support local food banks. Estimates reveal that average households are willing to pay 11.68% ($0.17/lb) more for locally grown produce relative to non-locally grown, and 10.75% ($0.33/lb) more for locally produced animal products. When the locally grown product attribute is combined with a food bank donation the WTP premium increases to 22.33% ($0.33/lb) for produce and 20.50% ($0.64/lb) for animal products. Consumers are only willing to pay a small price premium for products that contain the donation attribute but are not locally grown. However, a strong complimentary relationship was found between the local and donation attribute which suggest consumers have a stronger preference to donate when purchasing locally grown products than when purchasing nonlocal products.

Suggested Citation

  • Willis, David B. & Carpio, Carlos E. & Boys, Kathryn A. & Young, Emily D., 2013. "Consumer Willingness to Pay for Locally Grown Produce Designed to Support Local Food Banks and Enhance Locally Grown Producer Markets," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150288, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150288
    DOI: 10.22004/ag.econ.150288
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    References listed on IDEAS

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    Cited by:

    1. Vecchi, Martina & Jaenicke, Edward C., 2021. "Local food in times of crisis: the impact of Covid-19 and two reinforcing primes," 2021 Annual Meeting, August 1-3, Austin, Texas 313958, Agricultural and Applied Economics Association.
    2. Dobbs, Leah Moore & Jensen, Kimberly L. & Leffew, Megan Bruch & English, Burton C. & Lambert, Dayton M. & Clark, Christopher D., 2016. "Consumer Willingness to Pay for Tennessee Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-24, July.
    3. Dobbs, Leah & Jensen, Kimberly & Leffew, Megan & English, Burton & Lambert, Dayton & Clark, Christopher, 2015. "Willingness to Pay for Tennessee Beef among Tennessee Consumers," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196672, Southern Agricultural Economics Association.
    4. Maureen Stickel & Steven Deller, 2020. "Local Foods and Local Economic Performance," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 335-357, June.
    5. Martina Vecchi & Edward C. Jaenicke & Claudia Schmidt, 2022. "Local food in times of crisis: The impact of COVID‐19 and two reinforcing primes," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 850-873, October.
    6. Ekanem, Enefiok & Mafuyai, Mary & Tegegne, Fisseha & Illukpitya, Prabodh, . "Research Report: An Analysis of Consumer Perception of the Importance of Selected Attributes of Fruits and Vegetables: The Case of Tennessee," Journal of Food Distribution Research, Food Distribution Research Society, vol. 51(1).
    7. Spalding, Ashley & Kiesel, Kristin, 2018. "Willingness to Pay for Local, Value-Added Goods," 2018 Annual Meeting, August 5-7, Washington, D.C. 273990, Agricultural and Applied Economics Association.
    8. Printezis, Iryna & Grebitus, Carola, 2018. "Marketing Channels for Local Food," Ecological Economics, Elsevier, vol. 152(C), pages 161-171.

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    Keywords

    Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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