Price Premiums for Organic Food: The Education Effect

Summary

Australian consumers (N=221) were surveyed to establish their valuations of food, based on country of origin, organic status and eco-labelling. The effect of consumer education level on the valuation of Organic and Certified Organic food is reported. Respondents who reported completing secondary or tertiary education had a similar response style, valuing Certified Organic at approximately twice the premium of Organic. The secondary education group valued Organic at a premium of 6.2%, and Certified Organic at a premium of 12.9%. The tertiary education group valued Organic at a premium 9.5%, and Certified Organic at premium of 17.9%, (i.e. approximately 50% higher than the secondary education group). Respondents who had completed only primary school, attributed no premium to either Organic or Certified Organic.