Consumer willingness-to-pay for organic brinjal (eggplant) in Jaffna District, Sri Lanka

Abstract

Increased attention is focusing on the environmental impact of intensive agricultural practices and the health risk associated with pesticide residues. Excessive and careless use of agrochemicals leads to severe damages to the environment and human health. In this context, organic farming is gaining recognition as an environmental friendly production system and attracts researchers interested in analyzing the consumption behavior of organic products. This study examines the willingness-to-pay (WTP) for organic eggplant (brinjal) and the effects of various socio-economic variables on the WTP in Jaffna district, Sri Lanka. A consumer survey measuring WTP for organic eggplant was conducted in the study area. A pre-tested questionnaire was used for data collection by direct interviews. Three hundred fifty households were interviewed, of which, 267 completed questionnaires were used in this study. 'The survey included questions on demographic characteristics (such as age, education, gender, household size, etc.), and attitudes toward and knowledge about organic products, health hazards and environmental degradation due to agrochemical application. Questions related to premium prices that consumers would be willing to pay for organic eggplant was the primary focus of the survey. Respondents were asked to select their WTP from a set of given choices. Because of the discrete and ordinal nature of the dependent variable, an ordered probit model was constructed to identify the impacts of the relevant explanatory variables on the dependent variable (i.e., WTP for organic eggplant). 'The results suggest that WTP is significantly and positively affected by household income, the presence of children in the household, information dissemination through either hearing or reading about organic products, whether the family has a history of cancer and whether or not the household has concerns about pesticide residue in foods. Marketing efforts should be focused on this target group of consumers. Results also indicate that about 88 percent of the respondents would be willing to pay a premium for organic eggplant. This shows the market potential for organic eggplant (brinjal) in the area. The findings of the study will be helpful to producers in assessing market potential for organic eggplant in the Jaffna district. Marketing and pricing strategies can also be developed to effectively create awareness about organic products among consumers.