Determining the Willingness of Organic Agricultural Enterprises to Accept Product Price

Abstract

The study‘s main purpose is to to determine the price levels in the market and their willingness to accept higher prices of organic farming enterprises. For this purpose, enterprises engaged in organic farming activities in Konya were interviewed. A total of 883 organic farming enterprises in Konya grow 123 kinds of organic products, and as the products change, the organic structures of agricultural products change and their marketing channels, strategies and price formations also differ. In this context, 219 surveys were conducted in 13 product groups classified by TURKSTAT. In line with the data obtained as a result of the survey, the social, economic, production and marketing characteristics of the organic farming enterprises and the effects of the marketing structures of organic products on their willingness to accept prices were investigated using the Willingness to Accept (WTA) method, which is one of the conditional valuation methods. Furthermore, the marginal effects of each factor were determined by constructing the equation of the ordinal probit regression to be used to estimate the function of the WTA curve. As a result, suggestions have been developed for optimal price formation in the organic agriculture sector, where the marginal benefit is at the forefront, due to the high level of healthy life and environmental awareness, as well as marginal income, unlike traditional agricultural enterprises.