Article

Effects of Information on Consumers' Willingness to Pay for GM-Corn-Fed Beef

Journal of Agricultural & Food Industrial Organization 02/2007; 2(2):1058-1058. DOI: 10.2202/1542-0485.1058
Source: RePEc

ABSTRACT There has been growing public opposition against genetically modified (GM) foods. Using a dichotomous choice contingent valuation methodology, we analyze the factors that affect the willingness to pay for GM-corn-fed beef by consumers in Spokane, Washington. The mean discount required to choose the GM-fed beef is small at 8% compared to other studies in Europe and Japan. Further, half the sample was provided information about biotechnology, and the effect of this information is analyzed.

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    • "Examining the Italian yogurt market, Bonanno (2012) finds that the profitability of functional yogurt is, on average, larger compared to the conventional counterparts. Information about a functional product can influence the attitude and perception toward new food technology and functional products (Anand et al., 2007; Cox et al., 2008; Cranfield et al., 2011; Depositario et al., 2009; Hu et al., 2006; Li et al., 2004; Nayga et al., 2004). There is empirical evidence on how consumers respond to information provided about functional food product. "
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    ABSTRACT: Food markets in developing countries are experiencing an expansion of new functional products. Even though their market share is small, these food products are usually imported and post a higher price compared to local products. In this article, we investigate the consumer response toward new functional food products in Uzbekistan by focusing on the incorporation of apples enriched with antioxidant coating in the food market. We conduct consumer surveys with two different information treatments. We utilize a dichotomous‐choice contingent valuation methodology to estimate willingness to pay for this product and analyze factors that affect consumer choice. The results suggest that the average Uzbek respondent is willing to purchase functional apples with a 6% discount. The effect of information regarding the potential health benefits of antioxidants is positive and statistically significant. We compare the findings with a previous U.S. study of the same product and discuss how the delivery method provides an additional hurdle in the Uzbek market.
    Agricultural Economics 07/2013; 44(4-5). DOI:10.1111/agec.12035 · 1.09 Impact Factor
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    • "This could be a partial explanation to the relatively high bids in our experiment and should be addressed in future value elicitation research on GM biofortified crops. Future auction research can improve and validate our results in several ways, e.g. by exploring how these poor, low educated consumers react to another auction mechanism, such as the Becker– Degroot–Marschalk approach, which is also deemed appropriate in poor, rural areas (De Groote et al., 2011), by investigating the influence of (the order of) specific GM information treatments (Depositario et al., 2009a) additional outside options (Cherry, Frykblom , Shogren, List, & Sullivan, 2004) or a consumption requirement of the purchased product (Corrigan & Rousu, 2006), or by incorporating indirect valuation tools to control for potential social desirability bias (Lusk & Norwood, 2006). Regarding the target group, future research is needed to measure how much rice farmers' are willing to pay for FBR seeds among other seeds, in order to investigate the potential demand on the supply side. "
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    ABSTRACT: Provision of folate biofortified rice (FBR), a GM rice variant with higher folate content, has been recently proposed as an alternative health strategy to address folate deficiency and its main adverse outcomes, such as neural-tube defects. Based on experimental auctions with 251 women of childbearing age, split up between student (n = 120) and non-student auctions (n = 132), this study investigates the determinants of willingness-to-pay for this GM rice with health benefits in Shanxi Province, a high-risk region of China. The study shows that female Shanxi rice consumers are prepared to pay a premium of (sis) 1.73 or 33.7%, which corresponds with a switch to a rice variety that is one price/quality level higher than regular rice. Offering a GM-free folate substitute did not reveal significant differences in bidding behavior. Besides a significant target group effect, by which students are less likely to buy and pay more for FBR, willingness-to-pay is mainly determined by consumers' GM food acceptance and objective knowledge. Despite lower bids after providing information about the GM technology, the perceived benefits seem to be high enough to compensate for potential negative reactions to GM food. Our findings lend support for the large potential of biofortified staple crops in high-risk regions, even if these involve GM technology. (C) 2012 Elsevier Ltd. All rights reserved.
    Food Quality and Preference 09/2012; 25(2-2):87-94. DOI:10.1016/j.foodqual.2012.02.001 · 2.73 Impact Factor
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    • "In Norway, Grimsrud et al. (2004) find a willingness to buy GM bread only if discounted by 50% of the base price. Li et al. (2004) show that this discount is only 8% for GM corn fed beef in the United States but it could become even lower for second generation GM foods containing " quality traits " , so called functional foods. Yet in Canada, Larue et al. (2004) find that although " the introduction of GM functional plant foods should increase acceptance of GM production methods … many consumers will likely avoid functional foods derived from GM animals " (p. "
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    ABSTRACT: Although recurrent evidence is found that consumers have different willingness to pay for GM and non-GM products, there is disagreement in the scientific community about the size of consumer benefits from GM labeling. In this article we use a theoretical model based on a standard constant elasticity of substitution (CES) to explain the importance of the quality effect. It is shown that failing to consider the quality effect may yield an overestimation of benefits from GM labeling, voluntary or mandatory. Copyright 2007 International Association of Agricultural Economists.
    Agricultural Economics 09/2007; 37(2-3):237-242. DOI:10.1111/j.1574-0862.2007.00269.x · 1.09 Impact Factor
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