Consumer Preferences for Country‐of‐Origin Labeling in Protected Markets: Evidence from the Canadian Dairy Market

Amanda Norris and John Cranfield

Applied Economic Perspectives and Policy, 2019, vol. 41, issue 3, 391-403

Abstract: Recent trade agreements will expand Canada's market access commitments for dairy products. We explore whether Canadian consumers will respond to the increased presence of imported dairy products using a discrete choice experiment that accounts for price, country‐of‐origin (COO), production method, brand, and traceability. We use four processed dairy products to illustrate potential trade‐offs: Gouda and cheddar cheese, ice cream, and yogurt. There are statistically significant discounts associated with COO effects. These discounts vary with the dairy product and are large compared to consumer valuation of other included attributes. We find large premiums for traceability programs, suggesting that the absence of assurances related to traceability may mute actual market penetration arising from increased access to the Canadian dairy market.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:41:y:2019:i:3:p:391-403

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