Market Opportunities for Differentiated Locally Grown Fresh Produce: Understanding Consumer Preferences

Abstract

The intensification of agricultural practices, such as the extensive use of synthetic fertilizers, the expansion of irrigation systems, and land use conversion, has led to substantial biodiversity loss and the disruption of ecosystem functions. Traditional washing procedures for fresh produce involve substantial water usage and can generate wastewater, which requires proper management to prevent environmental contamination. By skipping the washing stage, these reduced water and energy inputs contribute to more sustainable agricultural practices. Although this approach may benefit sustainability and the environment, the market success of a product with a sustainable attribute ultimately depends on consumer acceptance and their willingness to pay (WTP) for it. This study investigates consumer preferences and WTP for a local potato variety called “Agria”, with a specific focus on the sustainability attribute concerning the sale of washed versus unwashed potatoes. We conducted an experimental study with consumers in northeastern Spain, where this potato variety is grown, and simulated market shares under varying price scenarios. The methodology involved a choice experiment that evaluated three characteristics: price, local origin, and presentation (washed versus unwashed). The methodology also incorporated attribute non-attendance (ANA) to capture all aspects of the decision-making process. The findings reveal that consumers preferred the locally grown variety over those from other origins and were willing to pay a premium. Although consumers preferred washed potatoes, they would purchase unwashed potatoes at a discount price of EUR 0.2/kg. The results provide marketing and pricing strategies for local producers and retailers and market share projections aligned with consumer preferences for local food. Empirically, the study contributes to the literature on consumer preferences and sustainable food systems by (i) integrating the “washed versus unwashed” attribute with local origin to inform more effective marketing strategies; and (ii) supporting local potato growers through the identification of viable lunch strategies for a differentiated, unwashed product that extends shelf life, reduces food waste, and promotes sustainability by lowering water and energy use in post-harvest processing. For methodologically, it applies ANA in the context of potato choice experiments—an approach rarely used in this domain—to enhance the understanding of consumer decision-making.