Demands for Local and Organic Produce: A Brief Overview of the Literature.

Abstract

Environmentally Identified Products ( EIPs) refers to food products that are described as organic or sustainable, or were grown using Integrated Pest Management (IPM), or in other respects are viewed as having a relatively less negative impact on the environment than directly competing products. This paper reviews articles investigating the characteristics and preferences of consumers of, and demand for, EIPs in the US. Findings are reported on demographic variables, psychographic variables, willingness to pay, and consumer behavior, both for EIP consumers and non-EIP consumers. Many of the variables such as income and family size that are usually important for determining food demands, do not appear important in determining demand for EIPs. Moreover, the nature of the variables that actually do determine demands for EIPs are poorly understood. Very little research has been done on demands for locally-grown produce. Consumers generally have a favorable attitude towards organic produce, and information and availability are the most important barriers to consumption.