Organic Certification, Online Market Access, and Agricultural Product Prices: Evidence from Chinese Apple Farmers

Li Zhang, Dong Liu, Qie Yin and Jundi Liu ()
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Li Zhang: College of Economics and Management, Northwest A&F University, Xianyang 712100, China
Dong Liu: College of Economics and Management, Northwest A&F University, Xianyang 712100, China
Qie Yin: College of Economics and Management, Northwest A&F University, Xianyang 712100, China
Jundi Liu: College of Economics and Management, Northwest A&F University, Xianyang 712100, China

Agriculture, 2024, vol. 14, issue 5, 1-18

Abstract: Motivated by the increasing interest in sustainable agriculture and the potential benefits associated with organic certification, this study employs a multidimensional fixed-effects model to analyze data derived from onsite surveys conducted among 681 apple farmers in the Loess Plateau region of China to explore the influence of organic certification on absolute and relative agricultural product prices given online market access. The findings indicated a significant increase in apple prices among farmers who held organic certifications and engaged in online market sales, with prices rising by CNY1.60 per half kilogram. Additionally, this study highlights that the amalgamation of organic certification with online market access significantly enhances agricultural product prices by facilitating better dissemination of market information among farmers. Furthermore, this research addresses a critical gap in the existing literature by clarifying the differential impact of organic certification across distinct farmer demographics and geographical regions. The more pronounced positive impact of organic certification on prices observed among cooperative members and farmers in the low-altitude areas is particularly noteworthy. These results underscore the crucial role of online market access in achieving premium effects and price stability for organically certified products.

Keywords: organic certification; online market access; absolute price; relative price; farmers; apple; China (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
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