Consumer Acceptance and Willingness to Pay for Genetically Modified Vegetable Oil and Salmon: A Multiple-Country Assessment

Since the first approval for commercialization of genetically modified (GM) crops in 1996, the adoptions of GM soybeans in Argentina and the United States (US), Bt and herbicide-tolerant corns in the US, and Bt and herbicide-tolerant cottons in China, South Africa, and the US have been phenomenal (Fernandez-Cornejo & McBride, 2002; Darr & Chern, 2002). Table 1 shows that the adoption rate of GM soybeans in the US increased from a mere 7.4% in 1996 to 75% in 2002. The adoption rate of total GM corn reached the peak of 38% in 1999, then declined to 26% in 2001 and subsequently recovered to 34% in 2002. Genetically modified cotton also exhibits a trend similar to GM soybeans. US farmers in general have embraced genetically modified organisms (GMOs), but at the same time are frustrated with the uncertainty of marketing GM crops. Uncertainties of consumer acceptance have increased in many parts of the world, especially in Europe and Japan. In particular, the imposition of a mandatory labeling of GM foods in many agricultural importing countries has intensified the debates on the future of biotechnology application in agricultural production. Consumer acceptance has become a key for success in marketing GM foods in the global agricultural market. Various factors are said to cause consumer concerns. Consumer organizations and other nongovernmental organizations (NGOs) have expressed concerns regarding antibiotic-resistant marker genes, potential allergic reactions, ethical and religious concerns, and the lack of consumer choice due to inadequate labeling (Franks, 1999). Such organizations have pushed for increasing regulation and GMO labeling in many parts of the world. Proposals for such regulation, in turn, make it more urgent and important to understand the extent of consumer acceptance and the factors affecting consumer attitudes and perceptions toward GM foods. In the US, the labeling of GM foods is voluntary; no foods have been labeled as GM foods in the market, even though many food products do indeed contain GM ingredients. In other countries, such as those in the European Union (EU) and Japan, the labeling of GM foods for many products is mandatory. Under this regulatory environment, most if not all food manufacturers and retailers would not market any GM foods for fear of consumer resistance. Because GM foods labeled as such cannot be found in the marketplace, the extent of consumer acceptance of GM foods cannot be easily assessed. Thus, we need to use other means such as consumer surveys. In order to understand the factors affecting the consumer acceptance of GM foods and to estimate the willingness to pay (WTP) for non-GM products, we have been conducting a multicountry survey project. Specifically, since 2000, we have organized a joint research project to conduct a multicountry analysis on consumer attitudes toward GM foods and on eliciting the consumers WTP for GM vs. non-GM foods in Japan, Norway, Taiwan, and the United States. During 2000 and 2001, we conducted a uniform student survey in the four countries. Most recently, in March and April 2002, we completed a pilot national telephone survey in Norway and the US, using a revised but uniform questionnaire. Other consumer surveys have been conducted in the US (Hoban, 1998, 1999; Hallman & Metcalfe, 2001; Moon & Balasubramanian, 2001; Mendenhall & Evenson, 2002), Italy (Boccaletti & Moro, 2000), the United Kingdom (Burton, Rigby, Young, & James, 2001), Germany (Spetsidis & Schamel, 2001), Belgium (Verdurme, Gellynck, & Viaene, 2001), and Japan (Macer & Wen S. Chern Department of Agricultural, Environmental, and Development Economics, The Ohio State University