WILLINGNESS TO PAY FOR IMPLEMENTING HACCP SYSTEMS IN CHINA’S SMALL AND MEDIUM-SIZED FOOD ENTERPRISES

Abstract

In China, a large number of small and medium-sized food enterprises (food SMEs) rarely adopt the hazard analysis and critical control points (HACCP) system, which results in a low product quality. Some local governments have encouraged food SMEs to implement HACCP systems through financial subsidies, but because of an incomplete understanding of the willingness to pay (WTP) for implementing HACCP systems in food SMEs, relevant policies have not enhanced the adoption rate of HACCP systems. Based on our questionnaire survey data of 132 food SMEs in China's Henan, Guangdong, and Zhejiang provinces, this study estimates Chinese food SMEs' WTP for implementing HACCP systems by a double bounded dichotomous choice contingent valuation method (CVM). According to the estimated results, the WTP for implementing HACCP systems under the log-logistic model is approximately 115,714 Chinese RMB (113,149 Chinese RMB for the log-normal model).

Keywords

• Contingent valuation
• hazard analysis and critical control point (HACCP)
• small and medium enterprises
• willingness to pay
• China