Abstract/Summary

Consumer demand for product differentiation between GM and non-GM “milanesa de soja” – a broadly consumed soya based product in Argentina - is analyzed by estimating consumer's WTP for a non-GM “milanesa de soja” using a double bound dichotomous choice contingent valuation method on a sample of 557 Argentinian consumers. Heterogeneity in consumers' WTP is taken into account by incorporating consumer's views on the risks and benefits associated with GMOs; consumer's subjective and objective knowledge on GMOs; consumer's relatedness to agriculture along with their socio-demographic characteristics into the analysis. Product differentiation for non-GM “milanesa de soja” was supported by consumers who tend to perceive risks associated with GMOs while not perceiving their potential associated benefits. This type of consumers would be willing to pay a 50% premium on the current price for a non-GM “milanesa de soja” (ARS $89.78). On the other hand, consumers who are more supportive of GMOs would be willing to pay less than the current price, ARS $60.00, for a non-GM “milanesa de soja” (ARS $56.97). Consumers who hold more objective knowledge on GMOs were found to be less supportive of product differentiation. Income and gender were found to be related to consumer's WTP for non-GM “milanesa de soja”. Overall, oduct di support for prfferentiation was found from consumers who perceived GMOs as a risky technology and do not appreciate its associated benefits. This support for product differentiation measured in monetary terms would need to be set side by side with the implementation costs of regulation (e.g. labelling) before its implementation.