Analisis Willingness To Pay Kopi Sidikalang Organik dan Kopi Sidikalang Nonorganik di Kota Medan dengan Contingent Valuation Method

Abstract

Indonesia is one of the world's leading coffee exporters. However, recently Indonesia lost Japan as an export country. This is due to the presence of isoprocarb which exceeds the threshold, causing a loss of $36 million. Based on this, it is important to start organic farming on coffee in Indonesia. The existence of research related to the analysis of willingness to pay for organic coffee products is expected to spur business improvement and guarantee the availability of organic coffee in the domestic market. The purpose of this study is to analyze the WTP value, analyze what factors influence whether or not to pay, and analyze what factors affect the WTP value of organic Sidikalang coffee and non-organic Sidikalang coffee in Medan city. This research uses CVM bidding games and DBDC techniques. The results showed that the WTP value of organic Sidikalang coffee was higher than its nonorganic counterpart. Factors that influence the willingness to pay for organic coffee are age, total income, and experience drinking organic coffee positively. As for gender, years of education, experience drinking organic coffee, and attitudes towards the environment negatively affect the willingness to pay for nonorganic coffee. In addition, what affects the WTP value of organic coffee is the amount of income, experience drinking organic coffee, and attitude towards the environment positively. However, the experience of drinking organic coffee and caring attitude towards the environment also affect the WTP value of nonorganic coffee because it is still available in many coffee outlets. Even so, these factors provide a higher bargaining value for organic Sidikalang coffee.