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DEMAND FOR ORGANIC AGRICULTURE PRODUCTS IN CHIANG MAI

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Updated:
October 17, 2017
Categories:
Agroecology studies & initiatives factsheetsAsia & Mekong RegionOrganic Agriculture (OA)
Description

Title of document:  DEMAND FOR ORGANIC AGRICULTURE PRODUCTS IN CHIANG MAI

Authors: Manawin Songkroh (Ph.D.)

Journal’s name if any:

 Ministry/Government Agency/Organisation:  Maejo University  Chiang Mai, Thailand

Year of publication: 2015

Geographic focus: National level

Main issues / topics addressed (for example: Organic agriculture product, market opportunity, organic product demand …)

School of agroecology (if any):

Web address to original document (if any):

 Summary:

This study aims to confirm relationship of determinants of demand for organic agriculture products in Chiang Mai. Self-administerred questionnaires was sent out to respondents in Chiang Mai and Lampang. Data analysis was done by multiple regression analysis. The results prove demand theory of determinants but various degree of importance. For application of the results, producers should provide more information regarding consuming organic products to increase demand and to consumer with higher income as they tend to consumer more organic food than those of lower income consumers.

Nowadays, demand for organic products has been increased as consumers realizes the benefits of having good health in the long run. The production of organic products experiences with higher production cost. Regular production utilizes the chemicals pesticide while organic producers choose to use other more expensive methods. Nevertheless, the growth of organic product recently has made the industry experienced with external economics of scale resulting in the lower cost of organic product industry.

 

The author strongly recommend that producers should increase demand by providing more information regarding benefits to consumers including benefits on protecting environment. This should stimulate demand as Taste has the highest degree of 0.28 (the second biggest). The 0.29 Income infers that marketing of organic products must be targeted at higher income level consumers to ensure the increase of demand. Determinants of price and price of complimentary products confirm demand theory; and there is no use of managerial perspective. In sum, to increase organic products demand, information about benefits of consuming it must be publicized as much as possible and to higher income consumers.

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