Demand for milk labels in Germany: organic milk, conventional brands, and retail labels

Astrid Jonas and Jutta Roosen
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Astrid Jonas: Abbott GmbH & Co. KG, Ludwigshafen, Germany, Postal: Abbott GmbH & Co. KG, Ludwigshafen, Germany

Agribusiness, 2008, vol. 24, issue 2, 192-206

Abstract: German milk brands have come under significant price pressure due to the introduction of retail labels at the lower price end and of organic milk as a premium product. This analysis provides elasticity estimates by milk types and analyzes sociodemographic determinants of demand. A censored system of German household demand for organic and conventional milk, further separated into retail-label and brand milk, is estimated using a two-step procedure on data from the 2000-2003 German GfK ConsumerScan Houshold Survey. Own-price elasticities of conventional milk are around unity, but the demand for organic milk is very price-elastic. Results suggest that the price of organic milk should be considered as an important marketing instrument. [JEL-Code: D12, Q11]. © 2008 Wiley Periodicals, Inc.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:24:y:2008:i:2:p:192-206

DOI: 10.1002/agr.20155

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