Consumer Preferences for Animal Welfare Certified Eggs

Abstract

This study estimates consumers’ willingness to pay for several eggs attributes, with primary focus on animal welfare. A nationwide online survey of 1,000 consumers was conducted to determine consumers’ preferences for animal welfare certification and identify perceptions of animal welfare claims and certifications factors affecting consumers’ willingness to pay by using the mixed logit model. The results from a choice experiment indicate that consumers place significant value on animal welfare certification, package size, expiration date and prices. We find a high degree of heterogeneity in willingness to pay for free-range and cage-free eggs. The mean premium for free-range eggs and cage-free eggs are 2,672KRW and 1,862KRW per 10 eggs, respectively. Our results also indicate that consumer perceptions of animal welfare and certification are associated with a willingness to pay. Results suggest there is potential for increasing the market share for animal welfare certified eggs.