Estimating public participation in investment organic products in Babol (Case Study: Organic rice)

Ahmad Fatahi¹ Mohamad Rezvani² yadollah bostan³ Mohammad Arab⁴

1) Assistant Professor, Department of Economic Agriculture, Ardakan University,
2) M.Sc. Student of Agricultural Economics, Department of Economic Agriculture, Ardakan
3) M.Sc. Student of Agricultural Economics, Department of Economic Agriculture, Ardakan
4) M.Sc. Student of Agricultural Economics, Department of Economic Agriculture, ardakan

Publication : International Conference On Research Science And Technology(restconf.com)
Abstract :
Health and safety are considered to be significant factors in today life. In recent years, consumers concern in respect to the environmental and health issues associated with the food products has increased. As a consequence, demand for organic products has subsequently augmented. The present study provides marketing data in terms of consumers preferences and their willingness to pay for organic agricultural products in Babol city. The main objectives of this study include examining the consumers willingness to pay for organic rice and estimating public participation in investing in organic rice in Babol city. In the present research, contingent valuation method (CVM) using probability logistics function and limited two-part questionnaire, was applied. The findings derived from the Logit model for rice indicated that education level, cancer experience and insurance experience variables were significant at 1 %. The mean of willingness to pay for 1 kg organic rice was estimated to be 124.361 $. According to the average exchange rate for six months of 2015 (2.732 $), the studied family in this research tends to monthly assign 4.55 $ of its revenue to purchase organic rice. Furthermore, the level of public participation in investing in organic products was estimated to be 616.177 $. The aforementioned results provide important data concerning the production of organic agricultural products.
Keywords : Contingent valuation method Logit model willingness to pay Organic rice Babol City.