Willingness to pay for food produced in accordance with nature conservation criteria: a survey of the food chain

By A. Wirthgen

Abstract
Within the European Union, environment-friendly food production is receiving increasing interest. This can be seen in the growing demand for organic food as well as in the policies of some countries which support the production and the marketing of environment-friendly food. This contribution is part of an interdisciplinary project that is looking at the central question of how agriculture and nature conservation can be integrated.

The main objective of the marketing part of this project and of this article is to identify the willingness of various segments in the food chain to pay for food produced in accordance with nature conservation criteria.

A consumer survey (with 600 respondents) was conducted in and around Elbe-Valley, Germany, in 1999. The data were used to indicate how willing consumers are to pay for food associated with nature conservation, to estimate the demand elasticity and, finally, to explain the consumers' willingness to pay. To complete the demand analysis, additional research was conducted in the form of a survey of food retailers, processors and caterers (n=72) in the same area.

The results indicate that there is a willingness throughout the whole food chain to pay for food produced in accordance with nature conservation criteria. In conclusion, this study shows that nature conservation can be advantageous for farmers, as one way of differentiating and adding value to raw products.

Citation
Journal-on-Chain-and-Network-Science. 2004; 4(1): 45-54

IS: 1569-1829
UD: 200410
AN: 20043160518

Contact Information
Institute of Horticultural Economics, Market Analysis and Agricultural
Policy, Department of Economics, University of Hannover, Herrenhauser Str. 2,
30 419 Hannover, Germany.
E-Mail: wirthgen@ifgb.uni-hannover.de