Willingness to Pay for Certified Safe Vegetables Among Consumers in Cagayan de Oro City, Philippines

Abstract

Nowadays, consumers are becoming more health conscious. The demand for vegetables that are “certified safe” is expected to increase in proportion to the products with “certified safe” labels. Hence, the development of such products may improve the economic condition of smallholder farmers who will adopt safe vegetable production. In this study, we explored the various factors that may significantly affect consumer willingness to pay (WTP) for certified safe vegetables in Cagayan de Oro City, Philippines, using the Tobit model. The factors considered were socio-demographic details, purchase patterns for the supermarket and wet market, attitudinal factors, and food safety concerns. A mall intercept survey of 110 respondents buying vegetables from the grocery was conducted. The study focused on the following vegetables: tomato, eggplant, sweet pepper, bitter gourd, and cabbage. Results showed that respondents are moderately concerned regarding the preharvest and postharvest production practices, while they are extremely concerned with retail-related attributes. Appearance, type of market outlet, and label were found to be the main determinants of the respondents’ perceptions on whether the vegetables they purchase are safe or not. Majority agree that unsafe vegetables could cause immediate health problems and strongly agree that it could cause long-term health problems. In measuring the consumers’ WTP, majority of the respondents were willing to pay more, by as much as 14% higher, for vegetables that are “certified safe.” In conclusion, the demand for certified safe vegetables is reflected in the respondents’ positive perceptions on the quality, environmental advantages, and benefits of consuming certified safe vegetables manifested by higher WTP.