Consumer Preferences and Willingness to Pay for Organic and Locally Produced Walnuts: A Choice Experiment Approach

Consumers' increasing concern for their health, the environment, and ethical aspects of food production has generated a growing demand for organic and local produce. Specific information on consumer preferences, at the regional and product level, is necessary for producers to make better decisions. To investigate consumer preferences and their willingness to pay a premium for locally produced and organic walnut systems, we used a discrete choice experiment. Data were collected using face-to-face questionnaires from a representative sample of 501 walnut consumers from the main cities of Puebla, Mexico. The results showed heterogeneous preferences for different types of walnuts, with higher marginal utility and willingness to pay a premium for locally produced and organic nuts. However, lower preference was identified for the latter, with respect to locally produced nuts. Potential buyers of nuts were people under 40 years of age, with a monthly income of more than EUR 1500, and environmental advocates. Our findings provide producers, sellers, and policy makers with useful information that can guide them in developing successful market segmentation, communication, and pricing strategies for the walnut production and marketing.