This paper presents results from a field experiment designed to evaluate whether food processing alleviates consumers’ concerns about crops grown with recycled water. Recycled water has emerged as a potentially safe and cost-effective way to replace or supplement traditional irrigation water. However, adoption of recycled water by U.S. agricultural producers has been modest, in part, because of concerns that consumers will be reluctant to accept their products. Our results suggest that simple processing of foods such as drying or liquefying can relieve some of consumers’ concerns about use of recycled irrigation water. While consumers of processed foods are indifferent between irrigation with recycled and conventional water, they are less willing to pay for fresh foods irrigated with recycled water relative to conventional water. We also found that consumers would experience a welfare gain from a labeling policy communicating the use of recycled irrigation water on both processed and fresh foods. Our analysis further reveals that informational nudges that provide consumers with messages about benefits, risks, and both the benefits and risks of using recycled water have no statistically significant effect on consumers’ willingness to pay for fresh and processed foods irrigated with recycled water relative to a no-information control group.

BACKGROUND: Poor quality irrigation water is a major cause of disease transmission for urban inhabitants consuming fresh produce in many developing countries. Irradiation of food is an alternative approach to reducing health risks for consumers, but its implementation depends heavily on consumer acceptance.RESULTS: In this pilot study, we show that most respondents consider the water quality of Mexico City to be poor and a health risk, and would be willing to pay for irradiated food as a means of pasteurizing fresh iceberg lettuce.CONCLUSION: Irradiated food could, potentially, be accepted in developing countries that have problems with water quality. Such acceptance would presumably be due to the perception that such a novel technology would (1) alleviate water impairment, and (2) lead to economic improvement. It is then possible that the public considers that water quality is a more pressing concern than any potential side effects of food irradiation.

The growing concern for food safety and quality motivates governments and private sectors to improve consumers’ confidence in food systems, such as through adopting certifications and traceability systems. The recent emergence of diverse food labelling schemes and the turbulence in food systems in emerging countries have sparked questions about consumers’ valuation of such labels. Nonetheless, little is known on how the familiarity with, trust in and knowledge of these food labelling schemes affect consumers’ willingness to pay for labelling schemes in emerging market contexts. This study aims to address these literature gaps by investigating consumers’ valuation of existing certifications, branding and traceability labelling schemes in Vietnam. A face-to-face survey was conducted, including a discrete choice experiment on water spinach in Ho Chi Minh City, Vietnam. The findings indicated that Vietnamese consumers are generally willing to pay price premia for food labelling schemes, such as VietGAP certification, EU and USDA organic certifications, private branding and traceable Quick Response (QR) coding. While familiarity and understanding had no significant impact on Vietnamese consumers’ valuation, trust was found to be a critical factor shaping willingness to pay for products bearing VietGAP label. Policy implications and marketing strategies for organic certifications and traceability schemes in Vietnam are discussed.

The growing concern for food safety and quality motivates governments and private sectors to improve consumers&rsquo: confidence in food systems, such as through adopting certifications and traceability systems. The recent emergence of diverse food labelling schemes and the turbulence in food systems in emerging countries have sparked questions about consumers&rsquo: valuation of such labels. Nonetheless, little is known on how the familiarity with, trust in and knowledge of these food labelling schemes affect consumers&rsquo: willingness to pay for labelling schemes in emerging market contexts. This study aims to address these literature gaps by investigating consumers&rsquo: valuation of existing certifications, branding and traceability labelling schemes in Vietnam. A face-to-face survey was conducted, including a discrete choice experiment on water spinach in Ho Chi Minh City, Vietnam. The findings indicated that Vietnamese consumers are generally willing to pay price premia for food labelling schemes, such as VietGAP certification, EU and USDA organic certifications, private branding and traceable Quick Response (QR) coding. While familiarity and understanding had no significant impact on Vietnamese consumers&rsquo: valuation, trust was found to be a critical factor shaping willingness to pay for products bearing VietGAP label. Policy implications and marketing strategies for organic certifications and traceability schemes in Vietnam are discussed.