G&S Typesetters PDF proof WANKI MOON AND SIVA K. BALASUBRAMANIAN Willingness to Pay for Non-biotech Foods in the U.S. and U.K. This study uses closed-ended and payment card formats to elicit will- ingness to pay for breakfast cereals made from non-biotech ingredients. U.S. consumers were willing to pay a 10%12% premium to avoid biotech breakfast cereals, whereas U.K. consumers were willing to pay a 19%35% premium. Risk perceptions about agrobiotechnology proved to be an important factor shaping willingness to pay a premium for non-biotech breakfast cereals. If consumers perceived risks to hu- man health or environments from the use of biotechnology in crop/food production, or affiliated biotech foods unfavorably with morality or multinational corporations, they were more likely to pay a premium. Conversely, if consumers associated agrobiotechnology with various benefits (i.e., reduction in chemical use in crop production, mitigation of world food shortages, and improved nutritional content), they were less likely to pay a premium. The current controversy surrounding biotech foods has a profound im- pact on consumers around the world. The economic stakes are particularly high for stakeholders in the food supply chain: farmers, grain handlers, food processors, retailers, biotech firms, and regulatory agencies (Fernan- dez-Cornejo, Caswell, and Klotz-Ingram 1999; Feldmann, Morris, and Hoisington 2000; Kalaitzandonakes 2000). Several major U.S. and Euro- pean food manufacturers/retailers have declared they would accept only non-biotech crops. The recent recall of taco shells made of Starlink TM corns caused immense turmoil in both domestic and export markets (Harl et al. 2001). Overall, the current uncertain prospect for agrobiotechnology contrasts sharply with its promise a few years ago to dramatically improve both the nutrition value and production output of food crops. Growing pub- lic concern over agrobiotechnology has fueled this change, triggering de- bates on the viability of strategies such as identity preservation, market segregation, and labeling to separate genetically modified (GM) foods from non-GM foods in the supply chain. WINTER 2003 VOLUME 37, NUMBER 2 317 Wanki Moon is an Assistant Professor in the Department of Agribusiness Economics, Southern Illinois University, and Siva K. Balasubramanian is the Henry J. Rehn Professor, Department of Mar- keting, Southern Illinois University. The authors wish to acknowledge financial support for this re- search from the Illinois Council for Food and Agriculture Research (C-FAR) and Illinois-Missouri Biotechnology Alliance (IMBA). The Journal of Consumer Affairs, Vol. 37, No. 2, 2003 ISSN 0022-0078 Copyright 2003 by The American Council on Consumer Interests 07-W2835 10/23/03 10:39 AM Page 317