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How Do Preference and Perception of Risks Affect Willingness-To-Pay for Food Safety?

Published online by Cambridge University Press:  20 May 2025

Kuan-Ming Huang*
Affiliation:
Department of Agricultural Economics, Mississippi State University, Starkville, MS, USA
Xiaoli Etienne
Affiliation:
Department of Agricultural Economics and Rural Sociology, University of Idaho, Moscow, ID, USA
Ana Claudia Sant’Anna
Affiliation:
School of Agriculture and Food Systems, West Virginia University, Morgantown, WV, USA
*
Corresponding author: Kuan-Ming Huang; Email: Kmh1169@msstate.edu
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Abstract

Foodborne illnesses are costly to society and have been associated with local produce. The affordable “3-step wash” cleaning procedure was designed to reduce pathogens on produce. We estimate consumer willingness to pay (WTP) for food safety (i.e. 3-step washed), prepackage, and sales location attributes in locally grown produce (e.g., lettuce). On average, consumers are willing to pay $1.46 more for 3-step washed and $0.30 more for prepackaged lettuce. Additionally, consumers are willing to pay $0.16 more for fresh produce sold in natural stores and farmers markets compared to supermarkets, but $0.22 less for produce sold in other direct-to-consumer locations such as roadside stands. Higher WTP for the food safety attribute is associated with consumers who have greater risk aversion, less knowledge of foodborne illness, and stricter food safety cleaning and handling practices. Consumers highly concerned about foodborne risks also show higher WTP for both food safety and prepackage attributes. These findings can guide local farmers in making decisions about adopting pathogen-reduction cleaning procedures, selecting sales locations, and developing effective marketing strategies.

Information

Type
Research Article
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (https://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided that no alterations are made and the original article is properly cited. The written permission of Cambridge University Press must be obtained prior to any commercial use and/or adaptation of the article.
Copyright
© The Author(s), 2025. Published by Cambridge University Press on behalf of Southern Agricultural Economics Association
Figure 0

Figure 1. Explanations of product attributes.

Figure 1

Figure 2. Choice experiment exercise example.

Figure 2

Figure 3. Risk preference lottery exercise example.

Figure 3

Table 1. Ten paired lottery-choice decisions and the expected payout

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Figure 4. Number of risky choices made by respondents.

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Table 2. Demographic information of the survey respondents and variable descriptions

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Table 3. Mixed logit model in willingness to pay (WTP) space result

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Table 4. Multivariate regression results