Consumer Preference for Locally Grown Produce: An Analysis of Willingness-To-Pay and Geographic Scale

  • Perry Burnett University of Southern Indiana
  • Todd H. Kuethe U.S. Department of Agriculture, Economic Research Service
  • Curtis Price University of Southern Indiana
Keywords: Fresh Produce, Local Foods, Willingness-to-Pay, Price Premiums

Abstract

This study examines consumers' willingness-to-pay for locally grown fresh produce under five definitions of "local," including a generic term "locally grown" and four geographic intervals: multistate, state, regional, and county. A survey of 482 area residents in Evansville, Indiana, was conducted to examine how estimated price premiums vary with geographic scale. The results suggest that as the geographical scale shrinks, the estimated price premium increases. However, the differences across geographic intervals may not be substantial. Therefore, producers may expect similar price premiums when sourcing from larger geographic areas, and local food systems may ensure consistent profit margins while minimizing the costs of acquiring "local" foods.

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Author Biographies

Perry Burnett, University of Southern Indiana
University of Southern Indiana; 8600 University Boulevard; Evansville, IN 47712 USA; +1-812-465-7034.
Todd H. Kuethe, U.S. Department of Agriculture, Economic Research Service
United States Department of Agriculture, Economic Research Service; 355 E Street SW; Washington, DC 20472 USA; +1-202-694-5593.
Curtis Price, University of Southern Indiana
University of Southern Indiana; 8600 University Boulevard; Evansville, IN 47712 USA; +1-812-461-5348.
Published
2011-11-30
How to Cite
Burnett, P., Kuethe, T. H., & Price, C. (2011). Consumer Preference for Locally Grown Produce: An Analysis of Willingness-To-Pay and Geographic Scale. Journal of Agriculture, Food Systems, and Community Development, 2(1), 269-278. https://doi.org/10.5304/jafscd.2011.021.013