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Market Evidence of Packer Willingness to Pay for Traceability

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  • Sébastien Pouliot

Abstract

This article measures the willingness to pay for the traceability of steers. I use data on the price of steers in Quebec and Ontario to identify a demand shifter in a hedonic framework. I estimate error correction models to provide the first market-based econometric estimates of the willingness to pay for traceability. My best assessment is that a premium between C$0.02 and C$0.05 per pound of carcass (between 1.2% and 3.1%) is paid for traceable steers. Copyright 2011, Oxford University Press.

Suggested Citation

  • Sébastien Pouliot, 2011. "Market Evidence of Packer Willingness to Pay for Traceability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 735-751.
    • Handle: RePEc:oup:ajagec:v:93:y:2011:i:3:p:735-751
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    File URL: http://hdl.handle.net/10.1093/ajae/aar019
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    Cited by:

    1. Shengnan Sun & Xinping Wang & Yan Zhang, 2017. "Sustainable Traceability in the Food Supply Chain: The Impact of Consumer Willingness to Pay," Sustainability, MDPI, vol. 9(6), pages 1-19, June.
    2. Horeh, Marziyeh Bahalou & Elbakidze, Levan, 2022. "Produce Tracing from Farm to Wholesale and Food Safety in the U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322357, Agricultural and Applied Economics Association.
    3. Saak, Alexander E., 2016. "Traceability and reputation in supply chains," International Journal of Production Economics, Elsevier, vol. 177(C), pages 149-162.
    4. Pendell, Dustin L. & Tonsor, Glynn T. & Dhuyvetter, Kevin C. & Brester, Gary W. & Schroeder, Ted C., 2013. "Evolving beef export market access requirements for age and source verification," Food Policy, Elsevier, vol. 43(C), pages 332-340.
    5. Jason A. Winfree, 2023. "Collective reputation and food," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 666-683, June.

    More about this item

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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