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Market simulation of traceable food in China based on conjoint-value analysis: a traceable case of pork

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  • Hou, Bo
  • Wu, Linhai
  • Chen, Xiujuan

Abstract

The food-traceability system is considered to be one of the main measures to fundamentally prevent food-safety problems. It is of great value to study consumer demand for traceable food and market simulations that can adjust the production and supply structure of traceable food and promote traceable market development. Having sampled and interviewed 2,121 consumers in China, consumer preferences for traceable pork with different levels of safety information, and the respective market share of traceable pork with different product profiles were investigated using conjoint value analysis and the randomized first choice method. Results showed that Chinese consumers prioritized the certification of a traceable-pork safety-information attribute. Furthermore, consumers were willing to pay extra costs in order to obtain traceable safety information. However, this additional expenditure should account for no more than 30% of the price of ordinary pork, or consumer demand for safe pork decreases. Results of a market simulation also identified a type of traceable pork that had an optimal combination of attributes and met the needs of Chinese consumers. Consequently, the government should gradually promote a multilevel traceable-food market system in China by developing a combination of a certification mechanism and traceability system, and increasing financial subsidies for the construction of the traceability system.

Suggested Citation

  • Hou, Bo & Wu, Linhai & Chen, Xiujuan, 2019. "Market simulation of traceable food in China based on conjoint-value analysis: a traceable case of pork," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(5), December.
    • Handle: RePEc:ags:ifaamr:308818
    DOI: 10.22004/ag.econ.308818
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