Abstract
The last two decades have witnessed an increasing enthusiasm of consumers for products with specific characteristics, whether related to origin or production technology. Several studies show that consumers are willing to pay price premium for organic products and we may expect that the same happens with other attributes, such as origin and tradition. The aim of this study, based on surveys conducted in the context of a taste panel, is to establish the price premium that consumers are willing to pay for the feature «traditional variety», using Portuguese traditional varieties of apples as a case study. Using contingent valuation to determine the willingness to pay and panel data techniques for estimation, a hedonic price model is developed to explain how the price that consumers declare to be willing to pay is related, besides variety, to different attributes of apples, such as appearance and taste, production method and threat of extinction. The results suggest that consumers, regardless of their socio-economic characteristics, are willing to pay a higher price not only for apples with better taste, appearance and smell, but also for Portuguese traditional varieties.
Highlights
The main aim of the Common Agricultural Policy was to increase food yields
The main purpose of this paper is to determine the price premium that fruit and vegetable consumers are willing to pay for fruit and vegetable attributes, such as the feature «Portuguese traditional variety»
The knowledge of consumers’ preference for regional varieties and the level of the price premium they are willing to pay are of great importance
Summary
The main aim of the Common Agricultural Policy was to increase food yields. This influenced the balance between agriculture and biodiversity. Governments have provided infrastructure, new inputs and subsidies, encouraging specialization (Grigg, 1992; Negri, 2005; Negri et al, 2009). Each one of the names does not necessarily correspond to a distinct variety, since in different regions the same name might be applied to different varieties and different names could correspond to the same variety, this figure clearly shows the genetic diversity that existed in apple production. Hammer et al (1996), using the results of collecting missions in Albania, in 1941 and 1993, and in South Italy, in 1950 and in the eighties, found a degree of landraces genetic erosion of 72.4% and 72.8%, respectively
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