How much is the (labelled) pig? Effectiveness of and willingness to pay for the German animal husbandry label

Birgit Stoltenberg, Vladimir Manewitsch and Matthias Unfried
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Birgit Stoltenberg: Nürnberg Institut für Marktentscheidungen
Vladimir Manewitsch: Nürnberg Institut für Marktentscheidungen
Matthias Unfried: Nürnberg Institut für Marktentscheidungen

NIM Working Paper from Nürnberg Institut für Marktentscheidungen e.V.

Abstract: The German Minister of Food and Agriculture has initiated a mandatory state label for animal husbandry, revealing livestock production conditions. This study investigates consumer preferences and their willingness to pay price premiums for pork depending on the different husbandry conditions indicated by this label. We tested the originally planned label as well as a modification with additional information on the available living space for the animal, a modification with additional interpretive information (i.e. with colours indicating how a product scores on animal husbandry standards), and a combination of both modifications. Data were obtained from a representative online discrete choice experiment (N = 2,015) in Germany and analysed using random parameter logit modelling. Our results show that the label proposed by the government is effective in increasing the willingness to pay for meat produced with higher standards except the `organic' level. Furthermore, we show that indicating a ranking of husbandry conditions could further increase the willingness to pay for meat produced with higher husbandry standards.

Keywords: Animal welfare; Attitude behaviour gap; Credence attribute; Discrete choice experiment (DCE); Multi-level label; Organic; Purchase decision; Sustainable consumption; Willingness to pay (search for similar items in EconPapers)
Pages: 12 pages
Date: 2023-07
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