A contingent valuation analysis todetermine profitability of establishing localorganic wine markets in Spain

In this research an alternative is proposed for viticulture producers that would allow them to maintain their income andprevent the abandonment of their agricultural activity. The proposed alternative is the production of organic wine withsubsequent commercialization in the local market. The suitability of the alternative is measured by the acceptance of theproduct in local markets. This acceptance was determined through contingent valuation, which relates probability ofpurchase to willingness to pay (WTP). Since regional differences could exist for product acceptance, the preliminaryhypothesis was formulated that the importance of the viticulture sector in the regional economy makes consumers valuefarm work more highly and pay more for sustainable agricultural practices. Two regions of Spain were taken intoconsideration because of the different weight of their agricultural activity: Castile-La Mancha and the Community ofValencia. A survey of 800 wine consumers was made (400 from each region) to determine WTP. From the results it wasshown on the one hand that organizing organic wine in local markets can be a profitable alternative for wine producers and,on the other hand, consumers from regions where wine production shares a larger proportion of the regional economy arewilling to pay more for organic wine