African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6576

Full Length Research Paper

Determinants of willingness-to-pay a premium for organically produced tomatoes in Riyadh City, Kingdom of Saudi Arabia (KSA)

  Kamaleldin Ali Bashir    
Department of Agricultural Economics, College of Food and Agricultural Science, P. O. Box 2460, King Saud University, Riyadh, Kingdom of Saudi Arabia.
Email: [email protected]

  •  Accepted: 23 July 2012
  •  Published: 30 November 2012

Abstract

 

This article analyzes the determinants of consumers’ willingness-to-pay premium for organic tomatoes and explores the production potential. Descriptive statistics were used to summarize consumption characteristics and a logit model was used to understand the socioeconomic factors affecting consumers' choices. Results indicated that consumers are willing to pay higher prices for organic vegetables. This willingness varied with four socioeconomic variables: Age, income, education, and wife’s employment status and two opinion variables, namely shape and availability of organic products. There is a need to bolster consumers’ confidence in organic labels and to inform them about the availability of such products in the market.

 

Key words: Willingness-to-pay, organic vegetables, logit model, market.