Consumers’ Valuation of Local Specialty Coffee: The Case of Philippines

초록

The niche market of specialty coffee is emerging in the Philippines despite the stiff competition from imported low-priced coffee due to the efforts and initiatives of the producers and retailers of locally grown coffee. The main objective of this study is to identify consumers’ valuation of local specialty coffee in Philippines. The willingness to pay for local specialty coffee was estimated using the double-bounded dichotomous-choice contingent valuation method. The results revealed that consumers are willing to pay a premium for quality products, which suggests that coffee consumers have a positive preference for the local specialty coffee. Increasing the awareness and understanding of consumers about the facts of specialty coffee is important to increase the specialty coffee appreciation and market demand. Based on a consumer welfare analysis, consumers gain welfare from the introduction of local specialty coffee even when a price increases approximately 40 percent relative to conventional coffee.

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