Kesediaan Untuk Membayar Konsumen Dan Kesediaan Untuk Menerima Petani Cabai Merah Terhadap Label Keamanan Pangan (Studi Kasus : Konsumen Cabai Merah Kota Medan dan Petani Cabai Merah Kabupaten Karo)

Abstract

The research employed a Discrete Choice Experiment (DCE) with a D-optimal design, involving 262 consumer respondents and 265 farmer respondents. Data were analyzed using a mixed logit model to capture preference heterogeneity. The results indicate that price and freshness are the most important determinants of consumer preferences. Consumers are willing to pay up to 57% above the baseline price for very fresh chili, and they also value visual attributes such as bright skin color. Food safety labels show heterogeneous effects: one credible label increases utility with positive WTP, while other labels decrease utility and yield negative WTP due to lack of consumer trust. Socio-demographic factors such as gender, education, and income significantly affect preferences, whereas age has no significant effect. On the farmers’ side, WTA is strongly influenced by both economic and non-economic factors. Farmers demand high compensation for additional production risks (around IDR 10.9 million) and administrative burdens (around IDR 8.6 million). However, they are willing to sacrifice up to IDR 13 million of net profit to gain health and environmental benefits, reflecting an altruistic dimension in their adoption decisions. Overall, the study reveals a clear gap between consumer WTP and farmer WTA, implying that market mechanisms alone are insufficient. Policy interventions are necessary, including economic incentives, credible certification schemes, and consumer literacy programs. The findings contribute to academic literature, agribusiness marketing strategies, and policy formulation for sustainable food safety in Indonesia.