Valuing the Quality of Chicken Meat from Consumers' Viewpoint in Shiraz City of Iran

Document Type : Original Article

Authors

1 PhD Student in Agricultural Economics, Shiraz University, Shiraz, Iran

2 Professor, Department of Agricultural Economics, Faculty of Agriculture, Shiraz University, Shiraz, Iran.

Abstract

This study aimed at estimating the consumers' willingness to pay (WTP) a premium price and examining the factors influencing them for health-oriented chicken meat in Shiraz city of Iran. For this purpose, the health-oriented chicken meat with three attributes (including antibiotics free production process, full emptying of chicken abdominal contents during slaughtering and average carcass weight, i.e. size chicken, at the place of supply) was primarily introduced to the consumers. Contingent valuation method with single and double bounded questionnaires was used to assess the consumers’ willingness to pay (WTP) by completing 601 face to face questionnaires during autumn 2017. By performing a pretest, the parameters of the WTP distribution of target statistical population were determined and based on the methodology of Cooper (1993), the bid price vector was selected optimally. The results of the econometric models estimation showed an efficiency superiority of the double-bounded model over the single-bounded model. In addition, the household head’s educational level and the household income indicated positive effects on WTP while age and household dimension represented significantly negative effects. The extra consumers' WTP for health-oriented chicken meat was estimated to be averagely 26420 and 24240 IR Rial/Kg for single and double bounded models, respectively, that is, 35 and 32 percent of the conventional chicken meat price. Willing to pay an extra price implicitly implies a potential demand, suggesting an opportunity for the producers to gain from the health-oriented chicken meat in the market.

Keywords

References

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