Based on the survey data and information, this paper conducts analysis on the extra cost of traceability systems for agro-product enterprises in China. Calculation on concrete pricing of traceable products is conducted with Enterprise A as an example by using break-even pricing. The price that consumers are willing to pay for 10 traceable products in Enterprise A was measured by collecting 576 valid questionnaires in three cities in China. The benefit–cost ratio, contribution margin ration and profit growth rate are figured before and after implementing the traceability system to illustrate if Enterprise A is profitable after implementing the traceability system. The results show that extra cost incurred by the traceability system of Enterprise A is not high in China; it is not the main reason for the high price of traceable products. Enterprise A increases its operating efficiency and profit growth rate after implementing the traceability system. The pricing of traceable product should consider target consumers’ willingness to pay rather than setting prices blindingly. Government support and education to consumers are important to promote the construction of traceability system at the early stage of establishment of traceability system in China.

There have been more and more food safety incidents since 1990s in China. Implementation of traceability system is an important way to improve food safety in China. The food traceability system is still in an initial stage and implemented only in limited products and companies in China. Contingent valuation method (CVM) was used to investigate the Chinese consumers’ willingness to pay for traceable vegetables and beef. The research was based on 600 face-to-face survey conducted in Beijing, Shanghai and Jinan in China. It shows that: (1) Price of traceable bean sprouts, leccute and beef (BBS), place of purchase (PLACE), consumer perception of food risk (RISK), gender (GENDER), consumer health (HEALTH) and per capita monthly income (LANINCOME) have significant effects on consumers’ WTP for traceable food. (2) The respondents’ willingness to pay for traceable bean sprouts, leccute and beef are 91.7, 99.2 and 18.4% higher than normal bean sprouts, leccute and beef respectively. (3) Consumers show greater willingness to pay for the traceable food with other quality certification. Key words: Food traceability system, consumers’ willingness to pay, contingent valuation method.