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Consumer Premiums for Environmentally Friendly Grass-Fed and Organic Milk in the Southeast

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  • Wong, Jonathan
  • Raghunathan, Uthra
  • Escalante, Cesar L.
  • Wolfe, Kent

Abstract

This paper examines determinants of consumers’ willingness to pay a premium for grass-fed and organic dairy by using survey data collected from several south-eastern states. Ordered and Heckman probit regression techniques were used to identify the significance of consumer characteristics on their willingness to pay separate and comparative premiums, respectively, for the two milk product alternatives. The results indicate that while gender and household income are significant determinants of price premiums for both organic and grass-fed dairy products, only household income is positively significant in the Heckman selection estimation.

Suggested Citation

  • Wong, Jonathan & Raghunathan, Uthra & Escalante, Cesar L. & Wolfe, Kent, 2010. "Consumer Premiums for Environmentally Friendly Grass-Fed and Organic Milk in the Southeast," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 28(1), pages 1-14.
    • Handle: RePEc:ags:jloagb:131325
    DOI: 10.22004/ag.econ.131325
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    References listed on IDEAS

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    1. Misra, Sukant K. & Huang, Chung L. & Ott, Stephen L., 1991. "Georgia Consumers' Preference for Organically Grown Fresh Produce," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 9(2), pages 1-13.
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    6. Stevens-Garmon, John & Huang, Chung L. & Lin, Biing-Hwan, 2007. "Organic Demand: A Profile of Consumers in the Fresh Produce Market," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 22(2), pages 1-8.
    7. Kaneko, Naoya & Chern, Wen S., 2005. "Willingness to Pay for Genetically Modified Oil, Cornflakes, and Salmon: Evidence from a U.S. Telephone Survey," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-19, December.
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    Cited by:

    1. Giovanni Peira & Damiano Cortese & Giampiero Lombardi & Luigi Bollani, 2020. "Grass-Fed Milk Perception: Profiling Italian Consumer," Sustainability, MDPI, vol. 12(24), pages 1-13, December.
    2. Ribeiro, Jose Eduardo & Gschwandtner, Adelina & Revoredo-Giha, Cesar, 2021. "Estimation of a Hedonic Price Equation for Chicken Meat in the UK: Does the Organic Attribute Matter?," 2021 Conference, August 17-31, 2021, Virtual 314942, International Association of Agricultural Economists.
    3. DeLong, Karen L. & Jensen, Kimberly L. & Upendram, Sreedhar & Eckelkamp, Elizabeth, . "Consumer Preferences for Tennessee Milk," Journal of Food Distribution Research, Food Distribution Research Society, vol. 51(2).
    4. Yangchuan Wang & Olga Isengildina‐Massa & Shamar Stewart, 2023. "US grass‐fed beef premiums," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 664-690, July.

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