Consumer willingness to pay for organic and locally grown produce on Dominica: insights into the potential for an “Organic Island”

With the intent of improving agricultural revenues and solidifying her place as an ecotourism destination, it has been proposed that the island nation of The Commonwealth of Dominica convert all agriculture to organic production. This study explores Dominica’s current and potential domestic demand for organic and/or “locally grown” produce. Surveys were conducted with Dominican consumers to assess their opinions and willingness to pay for these products, and evaluated using a maximum likelihood estimation procedure. On average, Dominican consumers are willing to pay 17.5 % more for organic, and 12 % more for locally grown, produce. These results were varied significantly across demographic segments of the sampled population, respondent tastes and preferences, the health status of their family, and the extent to which they were early adopters of new products. Despite several expected challenges of a successful transition to organic, implementation of this policy may offer a net positive welfare increase for Dominica’s permanent residents. Results from this analysis suggest that, from the perspective of domestic consumers, Dominica should continue to pursue the possibility of becoming an “Organic Island.”