ANALYSIS OF CONSUMERS’ WILLINGNESS TO PAY PREMIUM FOR CERTIFIED ORGANIC CABBAGE IN THE ACCRA METROPOLITAN AREA

ABSTRACT 

Taking into account the danger in the continual use of synthetic chemicals in the production of vegetables and the increase in demand for organic products, this research set out to ascertain the perception of consumers on organic products, and estimate consumer willingness to pay for organic cabbage in the Accra metropolitan area of Ghana. Furthermore, the study identifies the factors that influence the consumers‟ willingness to pay premium for organic cabbage. A face-toface household-level survey of 260 respondents was conducted in Accra, Ghana in 2017 with a structured questionnaire. About 68 percent of the respondents know what organic products are by definition but 57.3 percent claim to have not consumed organic cabbage before especially because they cannot identify one. The double-bounded dichotomous choice contingent valuation method (CVM)-bidding game, was employed to elicit consumers‟ WTP information. The study found that, most consumers had positive perception on organic fruits and vegetables with benefit perception index (BPI) of 0.656, quality perception index (QPI) of 0.44. The empirical results also show that age, education, income, gender, and household size significantly influence consumers‟ WTP. Also product characteristics such as size, freshness and cleanliness statistically influence consumers‟ WTP for organic fruits and vegetables positively.