Organic Agriculture and Organic Food Consumption in Kosovo

Leonora Sopaj Hoxha and Anera Musliu

International Journal of Food and Agricultural Economics (IJFAEC), 2021, vol. 09, issue 01

Abstract: Organic agriculture is an alternative farming method that emerged in the early 20th century, in response to rapidly evolvement of agricultural practices. There are a number of factors that affect the development of organic products, among which, the most important factor is the consumer. Market demand increasesfor organic products mainly from the number of consumers. The aim of this study is to evaluate the awareness of consumers and their perceptions for organic products for the case of Kosovo, through the use of cross-sectional data for the year 2014 provided by the Ministry of Agriculture, Forestry and Rural Development. The results suggest that Kosovo’s consumers trust organic products more than conventional ones, comparing them in terms of mode of production, freshness, safety and taste, but however, despite the increase in food costs as a result of increasing age, family income, increasing family members, kosovars are not very willing to pay more for organic food. As part of the empirical analysis was conducted the OLS regression of variable Food Expenses over Family Incomes, Age, Education, Family Members and Children under the age of 14. It was suggested that families spend on average 306 Euros for food from their average incomes of 701 Euros. The results suggest that the variables of Age and Family Incomes are significant at 1% significance level while the variable of Family Members is significant at 5% level of significance. The variables of Education and number of Children under the age of 14 are found to not have an impact on food expenses. On the other hand, it is also evaluated that the Kosovar customers are willing to pay on average 19% higher price for organic products but this variable is found to be weakly correlated with family incomes

Keywords: Consumer/Household Economics; Demand and Price Analysis; Environmental Economics and Policy; Financial Economics; Food Consumption/Nutrition/Food Safety; Health Economics and Policy (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijfaec:309382

DOI: 10.22004/ag.econ.309382

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