Preferences for the Farmer-Owned Label: Evidence from Cheese Consumers in the United States

Q3 Business, Management and Accounting

Journal of Agricultural and Food Industrial Organization Pub Date : 2022-06-29 DOI:10.1515/jafio-2022-0010

J. Grashuis

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引用次数: 0

Abstract

Abstract Driven by external developments like industry consolidation and price volatility, organized farm producers seek opportunities to generate rent in the value-added segment of the agri-food industry. Given inherent constraints with cost efficiency and product quality, farm producer organizations (FPOs) may use branding to pursue differentiation. An opportunity is facilitated by the farmer-owned label, which constitutes an ownership signal to consumers. However, empirical evidence of the economic viability of the farmer-owned label is limited. Following a choice experiment with 296 cheese consumers in the United States, we specify a random parameter logit model and find a positive willingness-to-pay for the farmer-owned label which is in excess of private and corporate brands in the same product category. In the final model, the mean willingness-to-pay is estimated at $1.74. While the farmer-owned label is proven to be economically viable in a competitive product category, consumer preferences are heterogeneous. Also, there is no compatibility between the farmer-owned label and indicators of family ownership and product origin.

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对农民自有标签的偏好：来自美国奶酪消费者的证据

摘要在行业整合和价格波动等外部发展的驱动下，有组织的农场生产者寻求在农业食品行业的增值环节产生租金的机会。考虑到成本效率和产品质量的固有限制，农场生产者组织（FPO）可能会使用品牌来追求差异化。农民拥有的标签为机会提供了便利，这构成了对消费者的所有权信号。然而，农民拥有的标签的经济可行性的经验证据是有限的。在对美国296名奶酪消费者进行选择实验后，我们指定了一个随机参数logit模型，并发现农民拥有的标签的支付意愿高于同一产品类别中的私人和企业品牌。在最终模型中，平均支付意愿估计为1.74美元。虽然农民拥有的标签在竞争产品类别中被证明在经济上是可行的，但消费者的偏好是不同的。此外，农民拥有的标签与家庭所有权和产品来源的指标之间也不兼容。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Agricultural and Food Industrial Organization Business, Management and Accounting-Business, Management and Accounting (all)

CiteScore

3.10

自引率

0.00%

发文量

期刊介绍： The Journal of Agricultural & Food Industrial Organization (JAFIO) is a unique forum for empirical and theoretical research in industrial organization with a special focus on agricultural and food industries worldwide. As concentration, industrialization, and globalization continue to reshape horizontal and vertical relationships within the food supply chain, agricultural economists are revising both their views of traditional markets as well as their tools of analysis. At the core of this revision are strategic interactions between principals and agents, strategic interdependence between rival firms, and strategic trade policy between competing nations, all in a setting plagued by incomplete and/or imperfect information structures. Add to that biotechnology, electronic commerce, as well as the shift in focus from raw agricultural commodities to branded products, and the conclusion is that a "new" agricultural economics is needed for an increasingly complex "new" agriculture.