Price Premiums for Organic Food from Australia and China

Abstract

Australian consumers (N=221) were surveyed to establish their valuations of food, based on provenance, organic status and eco-labelling. For Chinese produce Organic attracted a 6.4% premium, and Certified Organic a 11.6% premium. This compares to Australian produce which attracted a 7.9% premium for Organic, and a 16.5% premium for Certified Organic. For Chinese produce Natural added a 1.7% premium and Eco a 2.9% premium, compared to Australian produce which added a 2.6% premium for Natural and a 2.8% premium for Eco. Chinese produce was devalued by 20.6%, compared to Australian produce (alternatively Australian produce attracted a premium of 26.0% over Chinese product). Respondents who volunteered comments, indicated they were “dubious of” or lacked “trust” in the labelling of food from China; affordability and buying “local” were also issues mentioned by respondents. Certified Organic produce offers an opportunity for Chinese producers to improve their return for effort, and raise the status of their produce. Adjunctive labelling can add 14.6% to consumer valuations of Chinese produce.