Canadian Consumer's Willingness-To-Pay For Pesticide Free Food Products: An Ordered Probit Analysis

A new crop production system has emerged in western Canada. Pesticide Free ProductionTM (PFPTM) emphasizes reduced pesticide use in conjunction with increased reliance on producer knowledge of agronomic practices that mitigate weed, insect and disease pressure. A contingent valuation survey was undertaken to determine if Canadian consumers would pay a premium for PFPTM food products. Over 65 percent of respondents would be willing to pay a one to ten percent premium relative to a conventional food product. Five percent of respondents would be willing to pay more than a 20 percent premium. Health and environmental concerns, willingness to switch grocery stores and youth are important characteristics of consumers who would be willing to pay higher premiums. Distribution channels geared towards health food stores (or health food centers within grocery stores) are likely targets for PFPTM food products