Preferences and Willingness to Pay for Local and Imported Citrus
Indonesia horticultural product has experienced major implication from global free trade. Quantity of imported fruits was increased rapidly during the last ten years under implication of free trade. In spite implies market positively by boosting consumption and market growth, imports also implies increasing competition between imported and local fruit. Increase of imports has significantly affect production by decreasing number of certain scale of farm whose growth local product. It is important measuring whether the market and costumer response due the competition between locally grown and imported fruits. The study intended to (1) examined the difference of demands between local citrus and imported one. (2) measured demographic factors that influence costumer choice to buy local or imported citrus, and (3) examined product attributes that influence consumer willingness to pay (WTP) for local and imported citrus. The study was conducted in Malang district, East Java, Indonesia. Respondents were determined by purposive quota sampling method. WTP data was collected refer to modified “Vickrey Auction” principles. Binary Logit Regression and Ordinary Least Square analysis have been employed respectively to measure demographic factor that influenced costumer decision and examine the product attributes related to costumer WTP. The study has revealed that there were a different demand curve pattern and different own price elasticity between locally grown and imported citrus. Higher Income, higher number of dependant and younger costumer has driven higher probability on consuming imported citrus. This research also shown that color, safety, healthy and packaging significantly affect costumer willingness to pay for imported citrus, while taste and safety was significant for local citrus. The findings indicated that in certain market, consumer would pay higher price to afford imported citrus, which placed locally grown citrus in the high competition. Higher incomes will increase imported citrus consumption. Meanwhile, color and packaging are factors that must be considered by citrus local grower to win the competition.
Keywords: import; demand; locally grown; competition; willingness to pay; citrus.
 Annonymous. 2007. Agriculture Statistics by Countries: Indonesia. Food and Agricultural Organization.
 Annonymous. 2004. Sensus Pertanian Nasional 2003. Departemen Pertanian, Jakarta
 Hoekman, B. and D. Konan. 2010. Economic Implications of US Egypt FTA. World Bank -Development Research Groups.
 Raihan, S. 2009. EU-India Bilateral FTA: Potential Implications for the Excluded LowIncome Economies in Asia and Africa. GTAP conference in Santiago, Chile in June 2009
 Zhuang, R., J.W. Mattson and W.W. Koo. 2007. Implications of the U.S.-Korea Free Trade Agreement for Agriculture and other Sectors of the Economy. Agribusiness & Applied Economics Report No. 619, October 2007.
 Tangermann, Stefan. 1979. Policies of the European Community and Agricultural Trade with Developing Countries. International Association of Agricultural Economists 1979 Conference, September 3-12, 1979, Banff, Canada
 He, N. and John c. Bernard. 2011. Differences in WTP and Consumers Demand for Organic and Non-GM Fresh and Processed Foods. Agricultural and Resource Economics Review 40/2 (August 2011) 218-232 Copyright 2011 Northeastern Agricultural and Resource Economics Association
 Owusu V. and Michael Owusu Aniforib. 2013. Consumer Willingness to Pay a Premium for Organic Fruit and Vegetable in Ghana. International Food and Agribusiness Management Review Volume 16, Issue 1, 2013
 Boccaletti S. and M. Nardella. 2000. Consumer willingness to pay for pesticide-free fresh fruit and vegetables in Italy. International Food and Agribusiness Management Review 3 (2000) 297–310
 Bernard, J.C., C. Zhang, and K. Gifford. 2006. “An Experimental Investigation of Consumer Willingness to Pay for Non-GM Foods when an Organic Option is Present.” Agricultural and Resource Economics Review 35(2): 374-385
 Skreli, Drini Imami, Tatjana Dishnica, Alban Jaupi, Alban Cela and Arbi Fortuzi. 2011. Consumers’ preferences for apple fruits in Tirana market using a conjoint analysis. Paper presented at International Food and agribusiness Management Asocciation (IFAMA) Symposium 2011
 Aizahki, H. 2015. Examining Substitution Patterns between Domestic and Imported Agricultural Products for Broccoli, Kiwifruit, Rice and Apples in Japan. JARQ 49 (2), 143–148 (2015) http://www.jircas.affrc.go.jp
 McLaren, D. and Tim Josling. 1999. Competition Policy and International Agricultural Trade. International Agricultural Trade Consortium. Working Paper No. 99-7. July 1999
 Benson G.A., Mary Marchant and Parr Rosson. US. Agriculture and International Trade. Risk Management, Farm Policy and International Trade. Kansas State University. Diunduh dari: http://www.oznet.ksu.edu pada: 20 April 2015, 07:33
 Huang, Sophia Wu., Kuo S. Huang and Hodan Farah Wells. 2011. Presentation at the Agricultural & Applied Economics Association’s. Economic Research Service U.S. Department of Agriculture. AAEA & NAREA Joint Annual Meeting, Pittsburgh, Pennsylvania, July 24-26, 2011
 Breidert C., Michael Hashler and Thomas Reutterer, 2006. A Review of Methods for Measuring Willingness-To-Pay. Innovative Marketing, Volume 2, Issue 4, 2006Pp: 8-31.
 Ortiz, Allan. 2010. Customers“ Willingness To Pay Premium For Locally Sourced Menu Items. UMI Disertation Publishing No. 1488166. Copyright 2011 byProQuest LLC. Ann Arbor, MI. USA
 Anderson K. and Johanna Croser, 2010. How Much Do Agricultural Policy Restrict Trade?. Comparing Trade Restrictivenes Indexes. Poverty Reduction and Economic Management (Prem) Network. The World Bank Economic Premise, Number 4. March 2010.
 Annonymous. 2011. China’s Agricultural Trade: Competitive Condition and Effects on US Exports. US international Trade Commision. USITC Publication 4219, No. 332-518, March 2011