Consumer Preferences and Willingness to Pay for Participatory Guarantee Systems of Organic Certification
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Abstract
Participatory guarantee systems (PGS) are developed to reduce costs and requirements from third-party certification that can constrain smallholder farmers to apply for the organic certification. This study aimed to investigate consumers’ preferences and willingness to pay for the PGS label and other labels on fresh produce. The study was done in two provinces; Nakhon Pathom, where there was a network of the PGS and representing a local market, and Bangkok, representing an urban market. A choice experiment (CE) was employed by using a Chinese cabbage as an example of fresh produce. The results showed that consumers preferred and were willing to pay more for organic and food safety labels, also paid attention to the freshness of the produce. When compared between local and urban market, it was seen that consumers in Nakhon Pathom were willing to pay more for the PGS label than those consumers in Bangkok. Results indicated that PGS was more practical in local market than urban market. The expansion of the PGS product to urban market is yet challenging.
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