Consumer's willingness to pay for organic fresh chicken meat in San Pablo City, Laguna, 2012.

Date

10-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Gordoncillo, Prudenciano U.

Abstract

The study was conducted to identify the consumers’ willingness to pay (WTP) for organic fresh chicken meat in San Pablo City, Laguna. Specifically, it aimed to: 1) determine consumers’ level of awareness towards organic fresh chicken meat; 2) identify demographic characteristics and other factors affecting willingness to pay for organic fresh chicken meat; 3) find out how health consciousness, environmental concern and knowledge and awareness on organic farming/agriculture relate to consumers’ willingness to pay for organic fresh chicken meat; and 4) provide recommendations and policy implications concerning organic chicken industry in the country. Primary and secondary data were gathered to determine consumers’ willingness to pay for organic fresh chicken meat. Primary data were then subjected to descriptive and inferential analyses. Results showed that majority of the respondents have already heard about organic foods. However, awareness for organic chicken was low. Most of the male and female respondents claimed that they have “medium” level of knowledge for organic foods. Meanwhile, most male respondents had a “low” knowledge rating for organic chicken while a large number of female respondents had a rating of “low” and “medium” knowledge level. Majority of those who were aware of organic food and organic chicken had shown that the television was the most common source of information while less common sources of information were found to be books and radio. Furthermore, the rating on importance of product attributes of chicken has shown that taste, meat quality, odour and safety were deemed very important by majority of the respondents; while nutritional benefits and texture were rated as important by most of the respondents. Two regression analyses were made to determine the factors affecting willingness to pay of consumers for organic fresh chicken meat at two different price bid levels - Php200 and Php250. The first regression revealed that at Php200, the factors significantly affecting willingness to pay for organic chicken were household income, health consciousness and knowledge and awareness. Meanwhile, the second regression showed that at Php250, the factors which significantly affect WTP for organic chicken were household income, mortality, morbidity and awareness on organic chicken. Majority of the respondents were willing to pay for organic fresh chicken meat even for a price premium; that is, a price higher than the cost of conventional broiler chicken available in the market. Based on the study, the health and nutritional value of organic chicken was evidently the main reason why consumers were willing to pay for it. Meanwhile, its price is a major setback in its marketability among consumers. Based on the findings of the study, the following were recommended: proper identification of potential organic chicken consumers; information dissemination among producers and consumers; government support for existing and potential organic chicken markets; research and development efforts for the organic chicken industry, and creation of inspection and regulatory board to ensure safety and validity test of organic chickens.

Language

English

Location

UPLB Main Library Special Collections Section

Call Number

Thesis

Document Type

Thesis

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