Michelle B. Baco Ignie V. Baco Jr. Capiz State University WILLINGNESS TO PAY PREMIUM FOR AN ORGANIC BANGUS: BASIS FOR PROMOTING ORGANIC AGRIBUSINESS IN THE LOCALITY Michelle B. Baco Ignie V. Baco Jr. Capiz State University

INTRODUCTION The market for organic agricultural commodities is growing quickly all over the world and in some parts of the country. A remarkable expansion due, among other things, to the greater interest shown by consumers aware of food safety issues involving real or perceived quality risks (Henson, 1996).

Introduction con’t.. In order to understand whether the market is ready for the introduction of organic products whether it would be beneficial to develop local organic production, it is important to find out if consumers are interested in buying organic food, if they are ready to pay premium prices for it, and what are the factors that influence adoption of organic bangus. Thus, the research question guiding this study is whether it is worth developing the market for organic food in the first district of Capiz

Statement of the Problem This study primarily investigated the factors influencing their buying decisions and willingness to pay premium for Organic Bangus. Specifically, this study seeks answer to the following questions: 1. What characteristics can be drawn from the respondents in terms of the following:

g. Family monthly income Place of residence Sex Age Civil status Highest educational attainment f. Household size g. Family monthly income

2. What are the most influencing factors that affect buying decisions of the consumers? 4. Are the consumers willing to buy an organic bangus? What is the average price that the consumers are willing to pay for a kilo of organic bangus?

Scope and Limitations of the Study This study will be limited at determining the profile characteristics of the consumers, influencing factors that affects buying decisions of the consumers, and average premium that the consumers are willing to pay if they will buy. Respodents will be limited to residents of the first district of Capiz, which are the direct buyers of the bangus from the production area of the university.

FINDINGS 1.A greater number (35.3 percent) of respondents came from Panitan; 20 percent came from Maayon; and 18.2 percent came from Pilar. Majority (81.2 percent) of the respondents are females; and18.8 percent are males.

FINDINGS Majority (78.8 percent) of the respondents are married, with a mean household size of approximately five, it can be seen that the respondents have small family . Majority of the respondents are wives, (75.3 percent) and are mostly college level (38.8 percent). Mean estimated monthly family income is PhP 10,095.

2.Results showed that the influencing factors that affects the buying decision of the consumers were: price, as the most influencing factor at (98.8 percent). Second is the production method, wherein majority (97.9 percent) of the consumers prefer organic method. Next is the origin factor, wherein majority (97.6 percent) of the consumers prefer it local.

Second to the least influencing factor is the convenience where all respondents prefer the commodity to be cleaned (washed), and lastly, the storage and packaging, in which the consumers prefer it to be stored in a box.

3. Majority (84.1 percent) of the respondents are willing to buy an organic bangus; and 15.9 percent are not willing to buy the said organic agricultural commodity.

4. Approximately one in every three or (33 4. Approximately one in every three or (33.5 percent) respondents are willing to pay a kilo of organic bangus equal to the set price of a regular (commercial) bangus which is PhP100 per kilo; 17.1 percent are willing to pay for either PhP130 or PhP150 per kilo. With an average price of approximately PhP132, the respondents are willing to pay PhP 32.00 as premium for organic bangus.

RECOMMENDATIONS 1. Organic bangus should be promoted to housewives because they are in-charge of the marketing of household's food. 2. Organic bangus price should be affordable for household with average income. It should be available locally and can be bought conveniently. 3. Local promotion of organic bangus should be done to capture interested market. Organic Bangus owners can join in the DTI trade fair to promote the product.

4. The local aqua farm owners should be informed on the consumers willingness to pay a higher price for organic bangus, thus, this will encourage bangus farm owners to shift from non-organic to organic bangus farming. An economic effects of consumer's willingness to pay premium is recommended for study of future researchers.

Thank You!!