Health vs. Environmental Motivation in Organic Preferences and Purchases

Economic analyses generally incorporate environmental motivations in examining the factors that determine whether consumers will buy organic and ecolabeled foods, but have not typically considered health and wellness motivations. Market research studies, using both focus groups and surveys, have found that many consumers believe that organic foods are healthier to eat, and have segmented consumers using health and wellness concerns as a factor associated with organic buying behavior. These findings have been widely interpreted in the press as indicating that health and wellness concerns are a primary motivator for buying organic. This study compares the impact of these motivators, as well as demographic and economic factors, in determining how dedicated a consumer is to organic buying as measured by whether more than 50 percent of the consumer's produce purchases are organic. The buying level results are compared to a model of stated preferences.Health Economics and Policy,

Demand Elasticities for Fresh Fruit at the Retail Level

The obesity epidemic in the US and elsewhere has re-doubled efforts to understand determinants of the quality of consumers' diets. Part of the discussion has centered on the potential of "fat taxes" and/or the subsidization of the purchase of fresh fruits and vegetables to coax consumers to better diets. Whether this discussion has merit or not, fundamental to the debate are the demand elasticities of the commodities involved. This study employs weekly data from several retail stores on fruit prices and sales to estimate elasticities of individual fruits. Estimates show consumers are more responsive to price than has been found previously.Consumer/Household Economics,

Consumers' Willingness to Pay for Washington Apples with Respect to Sensory Attributes

To evaluate consumers willingness to pay (WTP) for Washington apples, the effects of firmness and sweetness as the representative sensory attributes are investigated in addition to those of consumer demographics and preferences. A tasting survey was conducted in Portland, Oregon on two varieties of apples, Gala and Red Delicious. Survey data is analyzed by employing a dichotomous-choice contingent valuation method, the double-bounded model, and maximum likelihood estimates are obtained. This study shows that firmer and sweeter apples induce more WTP. Age is also an important factor affecting WTP for apples. Education, eating frequency, and race affect WTP in the Gala model but not the Red Delicious. Other variables, such as gender, annual household income level, and whether they buy organic food, do not add significant explanatory power in estimating consumers WTP.Consumer/Household Economics,

The Development of a Quality Scale to Measure the Impact of Quality on Supermarket Fruit Demand

This research examines how fluctuations in quality affect consumer expenditures for fresh fruit at the retail level. This paper examines how consumersÂ’' purchasing behaviors react to changes in fresh fruit quality by quantifying quality characteristics based on weekly observations. A four-point scale was created and used to quantify four different quality characteristics: bruising, markings, brilliance, and maturity. A non-linear Almost Ideal Demand System was used to model the share equations for Gala apples, Fuji apples, Red Delicious apples, other sweet apples, tart apples, pears, bananas, and oranges. Seventy-nine weeks of data on weekly store sales were collected from two grocery stores in the Portland, Oregon metropolitan area. Results from the quality measures are provided and discussed. Suggestions are made for modifications to the quality measures to improve the modeling results of future fruit-demand studies.Demand and Price Analysis,

Collecting Store-Level Data on Retail Supermarket Sales

Primary data-collection methods have been understood and studied to a great degree. For example, volumes can be written on the proper way to conduct a survey-based study. However, the process of collecting data from a retail establishment is not as well documented. This paper covers the tools and strategies used to collect weekly data in a retail environment and makes some suggestions for future researchers so that they may avoid similar problems that occurred during the data collection and entry process.Agribusiness,

Marketing-Management Impacts on Produce Sales

Produce departments are important to the profitability and competitiveness of grocery stores. Understanding how variables beyond price and seasonality impact the demand and ultimately sales for produce is vital. This study finds display size and the use of multiple displays to be the most powerful tools (after price) that produce managers have available to them, but only with the right products. Also, point-of-purchase signage is found to have limited impact. These findings are based on the estimation of a demand system of fruits with prices, advertising size and location, display size (including multiple displays), and product origin among the explanatory variables.Agribusiness, Marketing,

Transportation and Marketing Efficiency in the California Processing Tomato Industry

Agribusiness, Marketing,

Start-up and operating costs for artisan cheese companies

Lack of valid economic data for artisan cheese making is a serious impediment to developing a realistic business plan and obtaining financing. The objective of this study was to determine approximate start-up and operating costs for an artisan cheese company. In addition, values are provided for the required size of processing and aging facilities associated with specific production volumes. Following in-depth interviews with existing artisan cheese makers, an economic model was developed to predict costs based on input variables such as production volume, production frequency, cheese types, milk types and cost, labor expenses, and financing. Estimated values for start-up cost for processing and aging facility ranged from $267,248 to$623,874 for annual production volumes of 3,402 kg (7,500 lb) and 27,216 kg (60,000 lb), respectively. First-year production costs ranged from $65,245 to$620,094 for the above-mentioned production volumes. It is likely that high start-up and operating costs remain a significant entry barrier for artisan cheese entrepreneurs.Keywords: Economic model, Artisan cheese costKeywords: Economic model, Artisan cheese cos

Permits and licenses required for startup of artisan cheese plants in Oregon

"This publication is primarily intended for entrepreneurs who wish to start a new artisan cheese business and for dairy farm owners seeking new business opportunities for profitable use of milk. This guide outlines and describes the key steps involved in starting an artisan cheese plant in Oregon. These steps primarily involve obtaining approvals, permits, and licenses from various agencies. In explaining these steps, the guide provides general information about relevant laws and regulations."Reviewed August 2009. Facts and recommendations in this publication may no longer be valid. Please look for up-to-date information in the OSU Extension Catalog: http://extension.oregonstate.edu/catalogKeywords: licenses, milk, artisan cheese, dairy farm, permitsKeywords: licenses, milk, artisan cheese, dairy farm, permit

Northwest meat and livestock processor and producer survey on state inspection program

Published February 2009. Facts and recommendations in this publication may no longer be valid. Please look for up-to-date information in the OSU Extension Catalog: http://extension.oregonstate.edu/catalogThis publication may be photocopied or reprinted in its entirety for noncommercial purposes