Demand for organic produce: Trinidadian consumers’ willingness to pay for organic tomatoes

The differentiation that takes place in the Trinidad market only classifies tomatoes on the basis of its size. Farmers in many countries have been making an effort at agronomic differentiation strategies in order to receive better incomes. The purpose of this paper is to determine Trinidadian consumers’ willingness to pay (WTP) and the market potential for organic tomatoes when marketed as a differentiated product.

A survey research methodology was used in this study. A total of 405 consumers to be surveyed were randomly chosen using proportionate sampling. A logistic regression was used to estimate the factors affecting consumers’ WTP for organic tomatoes. An ANOVA model was used to determine the mean maximum WTP for organic tomatoes based on selected factors.

Most consumers were willing to pay premium prices for organic tomatoes. Results indicated that consumers’ area of residence, educational level, income range, and their perception of the health benefits derived from organic tomatoes significantly influenced their WTP for organic tomatoes.

Empirical results suggests a differentiated organic market should be implemented in Trinidad.

Given an informed consumer base, farmers can expect to receive a premium price for their produce. Consumers can benefit from having more choices in the agricultural market.