What motivates producers and consumers towards organic vegetables? A case of Nepal

Abstract

Organic agriculture is an emerging intervention in the farming system of Nepal, largely influenced by sharp demand in the national and regional markets, anticipated brisk economic growth, and growing concern of sustainability. The paper examined the determining and motivational factors affecting the decision of conventional producers and consumers towards organic vegetables. The very likely determining factors of willingness to pay and willingness to accept for consumers and producers, respectively, were identified using probit model. Findings revealed that education, landholding size, experience, information obtained from training and mobile/internet, and perception on organic productivity were significant determining factors for willingness to adopt organic farming at producers’ level. Similarly, age, education level, per capita income, perception on taste and nutrition of organic vegetables, and attitudes toward environment and pesticide residues were significantly influential to consumers’ willingness to pay a premium price for organic vegetables. Therefore, policymakers should consider the cost-saving strategies and information extension to encourage organic conversion at the producers’ level. At consumers’ level, nutrition and residual labeling and certification along with nudging strategies should be adopted to encourage and build confidence on organic vegetables.