Organic saffron position in the future household consumption basket and effective structures (Case study)

Abstract

Considering the importance of planning at the production level, it is necessary to identify the consumer's future behavior towards organic products. Thus, using seemingly unrelated regression and data of 2012 for 200 households in mashhad, in the present study we have tried to determine the future share of these products in the household's basket and also survey the effective factors on this share in organic saffron. The results showed that households in mashhad tend to allocate an average of 34 percent of their future consumption basket for organic saffron. The regression results illustrated that while children below 10 years old in the households, willingness to pay the price differential compared with non-organic products and organic labeling positively affected the willingness to pay for organic products, environmental concerns variables created by non-organic products had a negative effect on their willingness. Considering the research results, helping to raise people's awareness about food through different educational and advertising approaches, providing a mechanism to label organic products and assessing the strengths and weaknesses of producing and distributing the organic products are provided as suggestions.

Keywords

• Seemingly Unrelated Regression
• Organic agriculture
• Mashhad