IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v37y2021i4p749-763.html
   My bibliography  Save this article

A price premium for the farmer‐owned label? A choice experiment with milk consumers in the Netherlands

Author

Listed:
  • Jasper Grashuis

Abstract

Organized milk producers may use marketing mechanisms in response to price and policy variability. While adopted by numerous milk producer co‐operatives across the world, the farmer‐owned label is not yet used in the Dutch consumer marketplace. We estimate the viability of the farmer‐owned label in the Netherlands with a branded choice experiment. We observe a significant and positive willingness‐to‐pay for the farmer‐owned label, but only given the disclosure of additional information in terms of profit allocation to farmers as opposed to investors. Further variation in the willingness‐to‐pay across attributes is indicative of its complex position in the crowded landscape of marketing mechanisms. [EconLit Citations: C25, D83, D91, Q13].

Suggested Citation

  • Jasper Grashuis, 2021. "A price premium for the farmer‐owned label? A choice experiment with milk consumers in the Netherlands," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 749-763, October.
    • Handle: RePEc:wly:agribz:v:37:y:2021:i:4:p:749-763
    DOI: 10.1002/agr.21699
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/agr.21699
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.21699?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
    ---><---

    References listed on IDEAS

    as
    1. Jo, Jisung & Lusk, Jayson L. & Muller, Laurent & Ruffieux, Bernard, 2016. "Value of parsimonious nutritional information in a framed field experiment," Food Policy, Elsevier, vol. 63(C), pages 124-133.
    2. Jasper Grashuis, 2018. "An Exploratory Study of Cooperative Survival: Strategic Adaptation to External Developments," Sustainability, MDPI, vol. 10(3), pages 1-15, February.
    3. Faical Akaichi & Rodolfo M. Nayga, Jr & José M. Gil, 2012. "Assessing Consumers’ Willingness to Pay for Different Units of Organic Milk: Evidence from Multiunit Auctions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 60(4), pages 469-494, December.
    4. Chang, Jae Bong & Lusk, Jayson L., 2009. "Fairness and food choice," Food Policy, Elsevier, vol. 34(6), pages 483-491, December.
    5. Jos Bijman, 2018. "Exploring the Sustainability of the Cooperative Model in Dairy: The Case of the Netherlands," Sustainability, MDPI, vol. 10(7), pages 1-15, July.
    6. Klopčič, Marija & Kuipers, Abele & Malak-Rawlikowska, Agata & Stalgiene, Aldona & Ule, Anita & Erjavec, Karmen, 2019. "Dairy farmers' strategies in four European countries before and after abolition of the milk quota," Land Use Policy, Elsevier, vol. 88(C).
    7. Jasper Grashuis & Theodoros Skevas & Michelle S. Segovia, 2020. "Grocery Shopping Preferences during the COVID-19 Pandemic," Sustainability, MDPI, vol. 12(13), pages 1-10, July.
    8. Brian C. Briggeman & Jayson L. Lusk, 2011. "Preferences for fairness and equity in the food system," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(1), pages 1-29, March.
    9. Busch, Gesa & Spiller, Achim, 2016. "Farmer share and fair distribution in food chains from a consumer’s perspective," Journal of Economic Psychology, Elsevier, vol. 55(C), pages 149-158.
    10. Frenken, Koen, 2014. "The evolution of the Dutch dairy industry and the rise of cooperatives: a research note," Journal of Institutional Economics, Cambridge University Press, vol. 10(1), pages 163-174, March.
    11. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    12. Clark, Beth & Stewart, Gavin B. & Panzone, Luca A. & Kyriazakis, Ilias & Frewer, Lynn J., 2017. "Citizens, consumers and farm animal welfare: A meta-analysis of willingness-to-pay studies," Food Policy, Elsevier, vol. 68(C), pages 112-127.
    13. Julia Bronnmann & Frank Asche, 2016. "The Value of Product Attributes, Brands and Private Labels: An Analysis of Frozen Seafood in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 231-244, February.
    14. Silva, Andres & Nayga, Rodolfo M., Jr. & Campbell, Benjamin L. & Park, John L., 2011. "Revisiting Cheap Talk with New Evidence from a Field Experiment," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-12, August.
    15. Rana, Jyoti & Paul, Justin, 2017. "Consumer behavior and purchase intention for organic food: A review and research agenda," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 157-165.
    16. Savchenko, Olesya M. & Kecinski, Maik & Li, Tongzhe & Messer, Kent D. & Xu, Huidong, 2018. "Fresh foods irrigated with recycled water: A framed field experiment on consumer responses," Food Policy, Elsevier, vol. 80(C), pages 103-112.
    17. Florence Benoît-Moreau & Fabrice Larceneux & Valérie Renaudin, 2012. "Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects," Post-Print halshs-00673075, HAL.
    18. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    19. Dan Rigby & Michael Burton & Jo Pluske, 2016. "Preference Stability and Choice Consistency in Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 441-461, October.
    20. Jasper Grashuis & Alexandre Magnier, 2018. "Product differentiation by marketing and processing cooperatives: A choice experiment with cheese and cereal products," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 813-830, October.
    21. Geyskens, Inge & Keller, Kristopher O. & Dekimpe, Marnik G. & de Jong, Koen, 2018. "How to brand your private labels," Business Horizons, Elsevier, vol. 61(3), pages 487-496.
    22. Jayson L. Lusk & Brian C. Briggeman, 2011. "Selfishness, altruism, and inequality aversion toward consumers and farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 42(2), pages 121-139, March.
    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. Naphtal Habiyaremye & Nadhem Mtimet & Emily A. Ouma & Gideon A. Obare, 2023. "Consumers' willingness to pay for safe and quality milk: Evidence from experimental auctions in Rwanda," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1049-1074, October.
    2. Grashuis, Jasper & Su, Ye, 2023. "Consumer Preferences for State-Sponsored Designations: The Case of the Missouri Grown Label," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(1), January.

    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. Jasper Grashuis & Ye Su, 2022. "Inequality aversion and consumer ethnocentrism: Food consumer preferences for payoff distributions to farm producers," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 608-619, July.
    2. Ousmane Z. Traoré & Lota D. Tamini & Bernard Korai, 2023. "Willingness to pay for credence attributes associated with agri‐food products—Evidence from Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(3-4), pages 303-327, September.
    3. Van Loo, Ellen J. & Caputo, Vincenzina & Nayga, Rodolfo M. & Verbeke, Wim, 2014. "Consumers’ valuation of sustainability labels on meat," Food Policy, Elsevier, vol. 49(P1), pages 137-150.
    4. Fabio Boncinelli & Andrea Dominici & Federico Bondioni & Enrico Marone, 2024. "Consumers bahavior towards the country of origin labeling policy: The case of the pasta market in Italy," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 46-69, January.
    5. Grashuis, Jasper & Su, Ye, 2023. "Consumer Preferences for State-Sponsored Designations: The Case of the Missouri Grown Label," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(1), January.
    6. Wen Lin, 2023. "The effect of product quantity on willingness to pay: A meta‐regression analysis of beef valuation studies," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 646-663, July.
    7. Jasper Grashuis & Alexandre Magnier, 2018. "Product differentiation by marketing and processing cooperatives: A choice experiment with cheese and cereal products," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 813-830, October.
    8. Zeng, Qiyan & He, Zhipeng & Zeng, Yinchu, 2023. "Public procurement, consumers' preference and poverty alleviation through consumption," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    9. Antonella Samoggia & Zeynep Beyhan, 2022. "Fairness-Enabling Practices in Agro-Food Chain," Sustainability, MDPI, vol. 14(11), pages 1-24, May.
    10. David Throsby & Anita Zednik & Jorge E. Araña, 2021. "Public preferences for heritage conservation strategies: a choice modelling approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(3), pages 333-358, September.
    11. Du, Hua & Han, Qi & de Vries, Bauke & Sun, Jun, 2024. "Community solar PV adoption in residential apartment buildings: A case study on influencing factors and incentive measures in Wuhan," Applied Energy, Elsevier, vol. 354(PA).
    12. Jasper Grashuis & Theodoros Skevas & Michelle S. Segovia, 2020. "Grocery Shopping Preferences during the COVID-19 Pandemic," Sustainability, MDPI, vol. 12(13), pages 1-10, July.
    13. Mathieu Lambotte & Stephane De Cara & Valentin Bellassen, 2020. "Once a quality-food consumer, always a quality-food consumer? Consumption patterns of organic, label rouge, and geographical indications in French scanner data," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 101(1), pages 147-172.
    14. Jeff Luckstead & Rodolfo M. Nayga & Heather A. Snell, 2023. "US domestic workers' willingness to accept agricultural field jobs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1693-1715, September.
    15. Thomas Bittmann & Jens‐Peter Loy & Sven Anders, 2020. "Product differentiation and cost pass‐through: industry‐wide versus firm‐specific cost shocks," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1184-1209, October.
    16. Ana I. Sanjuán‐López & Helena Resano‐Ezcaray, 2020. "Labels for a Local Food Speciality Product: The Case of Saffron," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 778-797, September.
    17. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part I. Macro-scale analysis of literature and integrative synthesis of empirical evidence from applied economics, experimental psychology and neuroimag," Journal of choice modelling, Elsevier, vol. 41(C).
    18. Lin, Wen & Nayga, Rodolfo M., 2022. "Green identity labeling, environmental information, and pro-environmental food choices," Food Policy, Elsevier, vol. 106(C).
    19. Panchalingam, Thadchaigeni & Howard, Gregory & Allen Klaiber, H. & Roe, Brian E., 2023. "Food choice behavior of adolescents under parent-child interaction in the context of US school lunch programs," Food Policy, Elsevier, vol. 115(C).
    20. Lingling Xu & Xixi Yang & Linhai Wu & Xiujuan Chen & Lu Chen & Fu-Sheng Tsai, 2019. "Consumers’ Willingness to Pay for Food with Information on Animal Welfare, Lean Meat Essence Detection, and Traceability," IJERPH, MDPI, vol. 16(19), pages 1-22, September.

    More about this item

    Statistics

    Access and download statistics

    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:wly:agribz:v:37:y:2021:i:4:p:749-763. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    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.