Consumers' perceptions and willingness to pay for organically grown tomato in Accra metropolitan area

Abstract

Survey data obtained from Accra Metropolitan Area (AMA) in the Greater Accra Region of Ghana, was used to determine the willingness of households to pay (WTP) for organically produced fresh tomato. Consumers' knowledge of organic products, as well as their perceptions of these products was also ascertained. Contingent valuation method was employed to gauge the amount that households were willing to pay for organically grown tomato. Majority of the respondents (39.4%) agree that organic products define a healthy lifestyle. Organic products are perceived to have a superior quality by 37.5% strongly agreeing to the defining statement. About 35% of respondents agree that organic products have no harmful effect on the environment. Over 50% of the participants attested to having prior knowledge of organic farming and organic products, whilst 30.4% affirm to have consumed organic produce in the past. Overall, 77.1% of the respondents declared willingness to pay at least 10% price premium for 1kg organically grown tomato, whereas, 21.9% of the respondents are willing to pay price premium to the tune of 100%. On average, consumers' in Accra Metropolitan Area are willing to pay GHS3.22 for 1kg organically grown tomato. The conclusion that arise from this study is that; the average consumer is willing to pay some premium for organically grown tomato. Thus, there is a large potential market for organically grown tomato in Accra Metropolitan Area. As such, entrepreneurs and agro-food industries should take advantage of this opportunity to augment production, as well as effective marketing and distribution of organically grown tomato, so as to tap into this potential customer base.