Understanding the price perception: Assessing youth willingness to pay for organic rice in Indonesia

Agribusiness Department, IPB University, Bogor, Indonesia

^* Corresponding author: hera@apps.ipb.ac.id

Abstract

A critical step towards attaining sustainable agricultural development is the production of organic crops. The upstream sector’s support is crucial to the success of organic farming. Due to their understanding of sustainable food methods, the younger generation has the potential to lead the rise of organic agriculture. This study intends to examine young people’s perceptions, preferences, and willingness to pay for organic rice. The research uses original information gathered from 161 young respondents in Indonesia. The Discrete Choice Experiment (DCE) methodology and descriptive analysis are used. According to the study, despite having favourable impressions of organic rice and the ability to purchase it, the younger generation’s willingness to pay for it is still less than the average cost of organic rice. Compared to conventional rice, the younger generation is prepared to pay an extra IDR 10,776.83 for organic rice. Promoting organic rice with enticing health benefits, certifications, and environmental friendliness compared to conventional rice should be the main goal to increase youth preference for organic rice. Furthermore, decisions about the production of organic rice and the formulation of pricing policies should take into account the young generation’s willingness to pay for it.