Consumer Willingness to Pay for Locally Grown Produce Designed to Support Local Food Banks and Enhance Locally Grown Producer Markets

This study investigates the possibility of using local food banks as a distributor in the local food supply chain. The specific research objective is to estimate the price premium consumers are willing to pay at retail outlets for locally grown products, if consumers have knowledge that a portion of the purchase price will be used as a donation to support local food banks. Preliminary estimates reveal that households are willing to pay (WTP) 22.90% more for locally grown produce relative to non-locally grown, and 14.64% more for locally produced animal products. In absolute terms, consumers are WTP a $0.15 per pound premium for locally grown produce and $0.43 per pound premium for local animal products. When it was noted that a food bank donation is incorporated into product price, consumers are willing to pay a price dedicated donation premium of 4.80% ($0.03 per pound) for locally grown produce and 5.80% ($0.15 per pound) for local animal products. Results were found to vary by respondent income and gender.