• Consumer interest and willingness to pay for
    locally grown and produced organic food

Rural districts are challenged by depopulation and decline in economic growth.
Farming and food production plays a significant role in these areas – but there is a need for increasing the value creation to secure income and employment in the sector.

Increased value added in the production demands that the products have something “extra” to offer to the consumers, compared to conventional products. Organic production is one way to create value - another is to focus on aspects connected to different geographical characteristics.

In terms of the geographical characteristics, food chains can be described by:

  • Whether an agricultural product has been transported over a short distance or if it comes from a specific, named region
  • The geographical location of the manufacturer: Does manufacturing take place in the same region that the agricultural product comes from?
  • Whether the product is sold in nationwide retail chains, specialty shops, farm shops, restaurants etc.

An increased understanding of value creation through organic and geographic characteristics in different types of food chains is an essential requisite for optimal utilisation of the market potentials.


Purpose of the project

The purpose of the project is to quantitatively examine the Danish consumers’ expectations regarding the geographical aspects when it comes to organic food, and to identify the opportunities to activate the market potentials for geographically differentiated organic products.

In particular, the aim is to:

  • Operationalise the concept “local marketing chains” through development of a typology for organic food chains
  • To study the consumers’ perceptions of authenticity, credibility and quality in connection with the alternative types of local food chains
  • To examine the consumers’ buying behavior and willingness to pay for organic food from different types of food chains with different geographical characteristics.

The project will offer an insight in the market potentials for different kinds of local, organic food chains. From this knowledge the project is going to offer guiding principles, when it comes to investments in the development of new food products and marketing concepts in the organic sector - and thereby support the growth in the organic sector and the economic activity in Danish rural districts.

LOCO runs in the period 2016-2018.

Project leader

Professor Jørgen Dejgård Jensen
Department of Food and Resource Economics,
University of Copenhagen
E-mail: jorgen@ifro.ku.dk
Phone: 3533 6859