Consumer willingness to pay for farm animal welfare - transportation of farm animals to slaughter versus the use of mobile abattoirs

Fredrik Carlsson (), Peter Frykblom () and Carl Johan Lagerkvist ()
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Peter Frykblom: Department of Economics, Swedish University of Agricultural Sciences, Postal: Box 7013, SE-750 07 Uppsala, Sweden
Carl Johan Lagerkvist: Department of Economics, Swedish University of Agricultural Sciences, Postal: Box 7013, SE-750 07 Uppsala, Sweden

No 149, Working Papers in Economics from Göteborg University, Department of Economics

Abstract: This study employed a choice experiment (CE) to ascertain consumer preferences and willingness to pay (WTP) for non-market food product quality attributes. Data were obtained from a large mail survey and estimated with a random parameter logit model. The results indicate that Swedish consumers place greater monetary worth on the use of mobile abattoirs for cattle than for pigs, and even place a negative monetary value for mobile abattoirs in broiler production. We show how CE data can be used to estimate individual WTP, using a random parameter logit model. We find that there is a substantial difference in heterogeneity between consumers WTP for mobile abattoirs for the types of livestock included. Based on estimated distributions of WTP and available cost estimates, the market share for mobile abattoirs is predicted. The approach taken is vital to agribusinesses intending to serve specialized niche markets. Our results are useful for forming product differentiation strategies within the food industry as well as for the formation of food policy.

Keywords: Animal welfare; Choice experiments; Slaughter; Willingness to pay (search for similar items in EconPapers)
JEL-codes: D12 Q13 Q18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-mic and nep-res
Date: 2004-11-18
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