IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v79y2018icp223-239.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837717316460
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.landusepol.2018.07.045?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Emberger-Klein, Agnes & Menrad, Klaus & Heider, Dominik, 2016. "Determinants of Consumers’ Willingness-to-pay for Fairly-produced, Locally Grown Dairy Products," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 65(02), June.
    2. Lisette Ibanez & Anne Stenger, 2000. "Environment and Food Safety in Agriculture: Are Labels Efficient?," Australian Economic Papers, Wiley Blackwell, vol. 39(4), pages 452-464, December.
    3. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    4. Gil, Jose Maria & Gracia, Azucena & Sanchez Garcia, Mercedes, 2000. "Market Segmentation And Willingness To Pay For Organic Products In Spain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(2), pages 1-20.
    5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, November.
    6. Bromley, Daniel W & Hodge, Ian, 1990. "Private Property Rights and Presumptive Policy Entitlements: Reconsidering the Premises of Rural Policy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 17(2), pages 197-214.
    7. Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley, 2016. "Nudging farmers to enrol land into agri-environmental schemes: the role of a collective bonus," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(4), pages 609-636.
    8. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    9. Bliemer, Michiel C.J. & Rose, John M., 2013. "Confidence intervals of willingness-to-pay for random coefficient logit models," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 199-214.
    10. repec:bla:ausecp:v:39:y:2000:i:4:p:452-64 is not listed on IDEAS
    11. Megan E. Waldrop & Jill J. McCluskey & Ron C. Mittelhammer, 2017. "Products with multiple certifications: insights from the US wine market," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(4), pages 658-682.
    12. Illichmann, R. & Abdulai, A., 2014. "Analysis of Consumer Preferences and Wilingness-To-Pay for Organic Food Products in Germany," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49, March.
    13. Bethany Cooper & John Rose & Lin Crase, 2012. "Does anybody like water restrictions? Some observations in Australian urban communities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(1), pages 61-81, January.
    14. Frank Wätzold & Martin Drechsler & Karin Johst & Melanie Mewes & Astrid Sturm, 2016. "A Novel, Spatiotemporally Explicit Ecological-economic Modeling Procedure for the Design of Cost-effective Agri-environment Schemes to Conserve Biodiversity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(2), pages 489-512.
    15. Hensher,David A. & Rose,John M. & Greene,William H., 2015. "Applied Choice Analysis," Cambridge Books, Cambridge University Press, number 9781107465923, January.
    16. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    17. David A. Hensher, 2006. "How do respondents process stated choice experiments? Attribute consideration under varying information load," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 861-878.
    18. Weinrich, Ramona & Kühl, Sarah & Zühlsdorf, Anke & Spiller, Achim, 2014. "Consumer Attitudes in Germany towards Different Dairy Housing Systems and Their Implications for the Marketing of Pasture Raised Milk," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(4), pages 1-18, November.
    19. Markova-Nenova, Nonka & Wätzold, Frank, 2017. "PES for the poor? Preferences of potential buyers of forest ecosystem services for including distributive goals in the design of payments for conserving the dry spiny forest in Madagascar," Forest Policy and Economics, Elsevier, vol. 80(C), pages 71-79.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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.
    4. Gratiela Dana Boca, 2021. "Factors Influencing Consumer Behavior in Sustainable Fruit and Vegetable Consumption in Maramures County, Romania," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Markova-Nenova, Nonka & Wätzold, Frank, 2017. "Fairness to dairy cows or fairness to farmers: What counts more in the preferences of conventional milk buyers for ethical attributes of milk?," MPRA Paper 83066, University Library of Munich, Germany.
    2. 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.
    3. 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).
    4. Canessa, Carolin & Venus, Terese E. & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Incentives, Rewards or Both in Payments for Ecosystem Services: Drawing a Link Between Farmers' Preferences and Biodiversity Levels," Ecological Economics, Elsevier, vol. 213(C).
    5. Sarfo, Yaw & Musshoff, Oliver & Weber, Ron & Danne, Michael, 2021. "Farmers’ Willingness to Pay for Digital Credit: Evidence from a Discrete Choice Experiment in Madagascar," 2021 Conference, August 17-31, 2021, Virtual 315029, International Association of Agricultural Economists.
    6. Carsten Herbes & Johannes Dahlin & Peter Kurz, 2020. "Consumer Willingness To Pay for Proenvironmental Attributes of Biogas Digestate-Based Potting Soil," Sustainability, MDPI, vol. 12(16), pages 1-19, August.
    7. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    8. Canessa, Carolin & Venus, Terese & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Farmers’ preferences over alternative AECS designs. Do the ecological conditions influence the willingness to accept result-based contracts?," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334508, Agricultural Economics Society - AES.
    9. Kassie, Girma T. & Zeleke, Fresenbet & Birhanu, Mulugeta Y. & Scarpa, Riccardo, 2020. "Reminder Nudge, Attribute Nonattendance, and Willingness to Pay in a Discrete Choice Experiment," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304208, Agricultural and Applied Economics Association.
    10. Marianne Lefebvre & Pauline Laille & Masha Maslianskaia-Pautrel, 2020. "Individual preferences regarding pesticide-free management of green-spaces: a discret choice experiment with French citizens," Working Papers 2020.02, FAERE - French Association of Environmental and Resource Economists.
    11. Pauline Laille & Marianne Lefebvre & Masha Maslianskaia-Pautrel, 2020. "Individual preferences regarding pesticide-free management of green-spaces: a discret choice experiment with French citizens," Working Papers hal-02867639, HAL.
    12. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.
    13. Kevin W. Maina & Martin C. Parlasca & Elizaphan J. O. Rao & Matin Qaim, 2024. "Farmer‐friendly delivery of veterinary services: Experimental insights from the Kenyan dairy sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(3), pages 829-846, September.
    14. Manhique, Henrique & Wätzold, Frank, 2023. "Effects of Institutional Setting on Value Estimates of Stated Preference Surveys in Developing Economies: A Discrete Choice Experiment on Conserving Biodiversity in The Cape Floristic Region," MPRA Paper 118750, University Library of Munich, Germany.
    15. Richartz, P. Christoph & Abdulai, Awudu & Kornher, Lukas, 2020. "Attribute Non Attendance and Consumer Preferences for Online Food Products in Germany," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 69(01), March.
    16. Risius, Antje & Hamm, Ulrich, 2017. "Consumer segmentation based on attitudes - Does information change it all?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258328, Agricultural and Applied Economics Association.
    17. Rombach, Meike & Widmar, Nicole Olynk & Byrd, Elizabeth & Bitsch, Vera, 2018. "Do all roses smell equally sweet? Willingness to pay for flower attributes in specialized retail settings by German consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 91-99.
    18. Shijiu Yin & Shanshan Lv & Yusheng Chen & Linhai Wu & Mo Chen & Jiang Yan, 2018. "Consumer preference for infant milk‐based formula with select food safety information attributes: Evidence from a choice experiment in China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 557-569, December.
    19. Yanling Peng & Yuansheng Jiang & Yu Hong, 2022. "Heterogeneous Preferences for Selecting Attributes of Farmland Management Right Mortgages in Western China: A Demand Perspective," Land, MDPI, vol. 11(8), pages 1-14, July.
    20. Peng, Yanling & Ren, Yanjun & Zhong, Yu & Jiang, Yuansheng, 2022. "Farmers’ Heterogeneous Preferences for Selecting Attributes of Farmland Management Right Mortgages: Evidence from Western China," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322408, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:79:y:2018:i:c:p:223-239. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.