Progress 10/01/00 to 09/30/04
Outputs
The organic food industry has grown into an important sector in Vermont and many other states in the United States but few studies have been conducted to assess the industry's potentials and constraints. This project has examined consumers' valuation of and willingness to pay for organic food products through a conjoint survey conducted in Vermont in 2002 and has analyzed producers' concerns and needs for information through an organic producer survey conducted in Vermont in 2003. Results from the consumer survey have suggested that consumers are willing to pay significantly more for organic food products like apples and milk produced in Vermont and that the willingness to pay for organic products are different across regions and demographic groups. Results from the survey of Vermont organic producers have identified their major concerns and needs for information. Finddings from this study have been presented at professional meetings and two journal articles based on
this study are currently under review for publication.
Impacts
Results from this project have provided a lot of information on the relative importance of product attributes, consumer willingness to pay for organic food, characteristics of organic food consumers vs. non organic food consumers, and a database of organic producers in Vermont and their concerns and needs for information. Information from this study is useful to organic farmers, processors, retailers, consumers, researchers and policymakers.
Publications
- Wang, Q., G. Shi., and C. Chan-Halbrendt. 2004. Market potential for fine furniture manufactured from low-grade hardwood: Evidence from a conjoint analysis in the Northeast United States. Forest Products J. 54(5): 19-25.
- Wang, Q., and W. Zhang. 2004. China's potato industry and potential impacts on the global market. American J. of Potato Research 81: 101-109.
- Wang, Q., and Sun, J. 2003. Consumer preference and demand for organic food: Evidence from a Vermont survey. American Journal of Agricultural Economics (December). Abstract.
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Progress 01/01/03 to 12/31/03
Outputs
The overall goal of this proposed project is to assess the potentials of Vermont's organic food industry and to provide economic and marketing information that can help the industry expand its market and improve its efficiency and profitability. The major work we did in 2003 included: (1) more analysis of the consumer data collected from our conjoint survey in 2002, (2) development of an organic production survey to be conducted in Vermont in March 2004, and (3) collection of information on the possibility and potential for marketing some Vermont organic products in the Chinese market.
Impacts
Results from this project have provided information on the relative importance of product attributes, consumer willingness to pay for organic food, and the characteristics of organic food consumers and such information is useful to organic food farmers, processors, and retailers.
Publications
- No publications reported this period
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Progress 01/01/02 to 12/31/02
Outputs
The overall goal of this proposed project is to assess the potentials of Vermont's organic food industry and to provide economic and marketing information that can help the industry expand its market and improve its efficiency and profitability. A conjoint survey was developed and conducted in Vermont in 2002 to collect primary data for the study. Our analysis of data from 529 respondents suggests four major conclusions. First, 56.9% of the respondents purchased organic food in 2001 and their average expenditure on organic food was $72.7 per month. These numbers indicate that there is a significant market for organic food in Vermont. Second, results from conjoint analysis show that location and price were considered as the two most important attributes for Vermont consumers. Location contributed to the largest percentage (31.7%) of the preference rating for the respondents who purchased organic food, while price contributed to the largest percentage (49.3%) for the
respondents who did not purchase organic food. In other words, location (produced in Vermont or not) was an important factor to the organic food buyers while price was crucially important to consumers who have not purchased organic food. These results represent an encouraging message to the organic farmers and retailers who are located in Vermont. It basically implies that they can charge a price premium for organic food without significantly decreasing their sales. Third, the results from the regression model with demographic variables indicate that young people with high income, smaller household size and fewer children were willing to pay more for organic food. People living in the Northeastern Kingdom (rural area in Vermont) are willing to pay more for organic food than people living in Chittenden County (urban area of Vermont). Fourth, the results from our logit model analysis suggest that female young people with smaller household size, living in Northeastern Kingdom in Vermont,
having higher education level, and married were more likely to purchase organic food.
Impacts
Our survey and conjoint analysis provide information on the relative importance of product attributes, willingness to pay for organic food, and the characteristics of organic food consumers and such information is useful to organic farmers and retailers.
Publications
- Sun, J. and Wang, Q. 2002. A conjoint analysis of consumer demand for organic apples in Vermont. Agricultural and Resource Economics Review. 31/2: 263.
- Sun, J. 2002. Consumer demand for organic food in Vermont. MS thesis, University of Vermont.
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Progress 01/01/01 to 12/31/01
Outputs
The overall goal of this proposed project is to assess the potentials of Vermont's organic food industry and to provide economic and marketing information that can help the industry expand its market and improve its efficiency and profitability. Four specific objectives have been developed to attain this overall goal: (1) To assess the current status of Vermont's organic food industry, examine the potentials and restrictions for the industry to expand, and understand the concerns and needs of organic farmers, processors, retailers, and consumers, (2) to analyze the major differences between organic and conventional farms and examine the potentials of organic farming for improving small farm efficiency and profitability, (3) to examine consumer valuation of and willingness to pay for organic foods, concerns about organic food certification and labeling, and responses to alternative promotion messages and claims about organic foods, and (4) to provide economic and
marketing information for Vermont's organic food industry to develop effective promotion and marketing strategies and improve its profitability and efficiency. A short consumer survey was conducted as part of the 2001 Vermont Poll by the Center for Rural Studies at the University of Vermont. Data from the poll has been analyzed and a report has been prepared. Based on the findings from the survey and literature review, a conjoint survey has been developed and pretested and will be conducted in early 2002. The conjoint survey will examine consumer preference for and valuation of organic milk and organic apples and collect information on issues related to organic food. The survey will be first conducted in Vermont and then in four other northeast states. Data from the survey will provide useful information for assessing the market potentials for organic food products. A survey of Vermont organic food producer has also been developed and will be conducted in early 2002.
Impacts
Information from this study is expected to be useful to organic food producers, consumers, and policymaker.
Publications
- No publications reported this period
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Progress 10/01/00 to 12/31/00
Outputs
The overall goal of this proposed project is to assess the potentials of Vermont's organic food industry and to provide economic and marketing information that can help the industry expand its market and improve its efficiency and profitability. Four specific objectives are proposed to attain this overall goal: (1) To assess the current status of Vermont's organic food industry, examine the potentials and restrictions for the industry to expand, and understand the concerns and needs of organic farmers, processors, retailers, and consumers, (2) to analyze the major differences between organic and conventional farms and examine the potentials of organic farming for improving small farm efficiency and profitability, (3) to examine consumer valuation of and willingness to pay for organic foods, concerns about organic food certification and labeling, and responses to alternative promotion messages and claims about organic foods, and (4) to provide economic and marketing
information for Vermont's organic food industry to develop effective promotion and marketing strategies and improve its profitability and efficiency. During the first 4 months of the project, a short consumer survey has been developed and will be included in the 2001 Vermont Poll to be conducted by the Center for Rural Studies at the University of Vermont. Also, a conjoint suvey has been developed to evaluate consumer preferences for different attributes of organic milk.
Impacts
(N/A)
Publications
- No publications reported this period
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