Consumer willingness to pay for pesticide-free food products with different processing degrees: Does additional information on cultivation have an influence?

Abstract

Pesticide-free agriculture is an innovative form of land use, characterized by the abandonment of synthetic chemical pesticides and the use of mineral fertilizers. One significant factor in establishing such a land use system is, that consumers are willing to pay for the products it produces. The objective of this study was to assess the willingness to pay for four pesticide-free products (lettuce, wheat flour, soy drink, wheat roll) with different processing degrees using the contingent valuation method. In addition, the extent to which additional information on cultivation as well as socio-demographic characteristics have an influence on the willingness to pay was examined. By means of an online questionnaire, 597 German consumers were surveyed. The analyses show an additional willingness to pay for pesticide-free versus conventional products ranging from 38.3% to 93.7%. When additional information on synthetic chemical pesticide alternatives was given, there was a positive effect on the willingness to pay for unprocessed products and basic processed products that require cooking/preparation. Information on the regional cultivation on the other hand had no direct effect. For the socio-demographic characteristics, only individual effects on the willingness to pay could be proven. The findings indicate the possibility of positioning pesticide-free products in the middle market segment. Implications regarding the relevance of pesticide-free agriculture and food for the food chain actors can be derived from the results.