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Fair to the cow or fair to the farmer? The preferences of conventional milk buyers for ethical attributes of milk

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  • Markova-Nenova, Nonka
  • Wätzold, Frank

Abstract

Conventional dairy farming has been under pressure for lacking animal welfare, biodiversity loss through abandonment and intensification of grassland, and low milk prices during the 2015/16 milk price crisis. The relatively stable organic milk prices during the milk price crisis indicate that consumers have preferences for product characteristics besides the price. We investigate through a choice experiment the willingness-to-pay (WTP) of German conventional milk buyers for ethical attributes of milk production that address the above-mentioned concerns. Respondents have the highest WTP for animal welfare – free-stall plus summer pasture – followed by biodiversity conservation, support for small, below-average income farms, and regional milk production. Respondents also have a positive WTP to support all farms but only in combination with regional production. We further find a positive WTP to support small farms in combination with tethering. This implies animal-welfare concerns are somewhat counterbalanced by fairness aspects. Our insights may support developing labels and agri-environmental policies concerning ethical aspects of conventional milk production.

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  • Markova-Nenova, Nonka & Wätzold, Frank, 2018. "Fair to the cow or fair to the farmer? The preferences of conventional milk buyers for ethical attributes of milk," Land Use Policy, Elsevier, vol. 79(C), pages 223-239.
    • Handle: RePEc:eee:lauspo:v:79:y:2018:i:c:p:223-239
    DOI: 10.1016/j.landusepol.2018.07.045
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    1. Markova-Nenova, Nonka & Wätzold, Frank & Sturm, Astrid, 2020. "Distributional Impacts of Cost-effective Spatially Homogeneous and Regionalized Agri-Environment Payments. A case study of a Grassland Scheme in Saxony, Germany," MPRA Paper 104759, University Library of Munich, Germany.
    2. Leonardo Cei & Edi Defrancesco & Paola Gatto & Francesco Pagliacci, 2023. "Pay more for me, I’m from the mountains! The role of the EU Mountain Product term and other credence attributes in consumers’ valuation of lamb meat," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-21, December.
    3. Nthambi, Mary & Wätzold, Frank & Markova-Nenova, Nonka, 2018. "Quantifying benefit losses from poor governance of climate change adaptation projects: A discrete choice experiment with farmers in Kenya," MPRA Paper 94678, University Library of Munich, Germany.
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    5. Nthambi, Mary & Markova-Nenova, Nonka & Wätzold, Frank, 2021. "Quantifying Loss of Benefits from Poor Governance of Climate Change Adaptation Projects: A Discrete Choice Experiment with Farmers in Kenya," Ecological Economics, Elsevier, vol. 179(C).
    6. Georgia Papoutsi & Pantelis Noulas & Katerina Tsatoura, 2022. "Animals or Humans: What Do Greek Consumers Care More about When Buying Feta Cheese?," Sustainability, MDPI, vol. 15(1), pages 1-14, December.

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