Farmers’ Valuation of Incentives to Produce GMO-free Milk: A Discrete Choice Experiment

Julia A. Schreiner

No 199373, 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria from International European Forum on System Dynamics and Innovation in Food Networks

Abstract: This paper investigates farmers’ willingness to adopt a Genetically Modified Organisms (GMO)-free milk production scheme introduced by the dairy. Incentives like a price premium, advice, quality control and feed procurement are set to encourage the conversion. The analysis is based upon Discrete Choice Experiments with 151 dairy farmers in Germany. Alternative-specific conditional logit estimation reveals the marginal effects of incentives and the amount of compensation. The results indicate that attributes like the price premium, takeover of feed procurement and an external audit affect the likelihood of adoption. Farmer, farm characteristics and attitudes concerning GMO as well as expectations on feed prices were found to be significant determinants of adoption. Moreover the findings demonstrate variation in the values of attributes across regions.

Keywords: Agribusiness; Food Consumption/Nutrition/Food Safety; Production Economics (search for similar items in EconPapers)
Pages: 12
Date: 2014-10
New Economics Papers: this item is included in nep-agr and nep-dcm
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iefi14:199373

DOI: 10.22004/ag.econ.199373

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