Do Food Quality Schemes and Net Price Premiums Go Together?

Sylvette Monier-Dilhan, Poméon Thomas (), Böhm Michael, Brečić Ruzica, Csillag Peter, Donati Michele, Ferrer-Pérez Hugo, Gauvrit Lisa, Gil José M., Hoàng Việt, Lilavanichakul Apichaya, Majewski Edward, Malak-Rawlikowska Agata, Mattas Konstadinos, Orachos Napasintuwong, Nguyễn An Quỳnh, Nikolaou Kallirroi, Papadopoulos Ioannis, Pascucci Stefano, Peerlings Jack, Ristic Bojan, Steinnes Kamilla, Stojanovic Zaklina, Tomić Maksan Marina, Aron Torok, Mario Veneziani, Vittersø Gunnar and Bellassen Valentin
Additional contact information
Poméon Thomas: US ODR, INRAE, 31326, Castanet-Tolosan, France
Böhm Michael: ECOZEPT, Freising, Germany
Brečić Ruzica: University of Zagreb, Zagreb, Zagreb, Croatia
Csillag Peter: ECO-SENSUS Research and Communication, Szekszárd, Hungary
Donati Michele: University of Parma, Parma, Emilia-Romagna, Italy
Ferrer-Pérez Hugo: Center for Agro Food Economy and Development, Barcelona, Spain
Gauvrit Lisa: ECOZEPT, Montpellier, France
Gil José M.: Center for Agro Food Economy and Development, Barcelona, Spain
Hoàng Việt: University of Economics Ho Chi Minh City, Ho Chi Minh City, Viet Nam
Lilavanichakul Apichaya: Department of Agro-Industrial Technology, Faculty of Agro-Industry, Kasetsart University, Bangkok, Thailand
Majewski Edward: SGGW, Warsaw University of Life Sciences, Warszawa, Poland
Malak-Rawlikowska Agata: Warsaw University of Life Sciences, Warszawa, Poland
Mattas Konstadinos: Aristotle University of Thessaloniki, Thessaloniki, Greece
Nguyễn An Quỳnh: University of Economics Ho Chi Minh City, Ho Chi Minh City, Viet Nam
Nikolaou Kallirroi: Aristotle University of Thessaloniki, Thessaloniki, Greece
Papadopoulos Ioannis: Aristotle University of Thessaloniki, Thessaloniki, Greece
Pascucci Stefano: University of Exeter Environment and Sustainability Institute, Penryn, Cornwall, United Kingdom of Great Britain and Northern Ireland
Peerlings Jack: Wageningen Universiteit, Wageningen, Gelderland, Netherlands
Ristic Bojan: University of Belgrade, Beograd, Beograd, Serbia
Steinnes Kamilla: HiOA, National Institute for Consumer Research, Oslo, Norway
Stojanovic Zaklina: University of Belgrade, Beograd, Beograd, Serbia
Tomić Maksan Marina: University of Zagreb, Zagreb, Zagreb, Croatia
Vittersø Gunnar: HiOA, National Institute for Consumer Research, Oslo, Norway
Bellassen Valentin: CESAER, AgroSup Dijon, INRAE, 21000, Dijon, France
Authors registered in the RePEc Author Service: Hugo Ferrer Pérez

Journal of Agricultural & Food Industrial Organization, 2021, vol. 19, issue 2, 79-94

Abstract: This article addresses the issue of the profitability of Food Quality Scheme (FQS) products as compared to reference products, which are defined as analogous products without quality label. We approach this question by taking into account the level of the value chain (upstream, processing, and downstream), the sector (vegetal, animal, seafood) and the type of FQS (PGI, PDO, Organic). We collected original data for several products produced in selected European countries, as well as in Thailand and Vietnam. Comparisons depending on value chain level, sector and FQS are possible by using two comparable indicators: price premium and net price premium (including cost differential). The following principal conclusions were reached: 1) Price is higher for FQS products than for the reference products, regardless of the production level, the type of FQS or the sector; 2) Price premiums generated by FQS do not differ along the value chain, nor between sectors (vegetal, animal or seafood/fish); 3) Price premium for organic products is significantly higher than for PGI products, and this conclusion holds at upstream and processing levels, taking into account the costs directly related to production; 4) All organic products and almost all PDO and PGI products analysed benefit from a positive quality rent; 5) At upstream level and processing level, the relative weight of intermediate consumption in the cost structure is lower for organic products than for reference products.

Keywords: food quality scheme; geographical indication; organic; price premium; profitability (search for similar items in EconPapers)
JEL-codes: C12 Q01 Q18 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Do Food Quality Schemes and Net Price Premiums Go Together? (2020)
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DOI: 10.1515/jafio-2019-0044

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