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Demand for milk labels in Germany: organic milk, conventional brands, and retail labels

Author

Listed:
  • Astrid Jonas

    (Abbott GmbH & Co. KG, Ludwigshafen, Germany)

  • Jutta Roosen

    (Technische Universität München, Alte Akademie 16, 85350 Freising-Weihenstephan, Germany)

Abstract

German milk brands have come under significant price pressure due to the introduction of retail labels at the lower price end and of organic milk as a premium product. This analysis provides elasticity estimates by milk types and analyzes sociodemographic determinants of demand. A censored system of German household demand for organic and conventional milk, further separated into retail-label and brand milk, is estimated using a two-step procedure on data from the 2000-2003 German GfK ConsumerScan Houshold Survey. Own-price elasticities of conventional milk are around unity, but the demand for organic milk is very price-elastic. Results suggest that the price of organic milk should be considered as an important marketing instrument. [JEL-Code: D12, Q11]. © 2008 Wiley Periodicals, Inc.

Suggested Citation

  • Astrid Jonas & Jutta Roosen, 2008. "Demand for milk labels in Germany: organic milk, conventional brands, and retail labels," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 192-206.
    • Handle: RePEc:wly:agribz:v:24:y:2008:i:2:p:192-206
    DOI: 10.1002/agr.20155
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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