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Assessing consumer and producer preferences for animal welfare using a common elicitation format

J.A. Schreiner

No 277467, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: This study assesses pig farmers willingness-to-accept (WTA) higher farm animal welfare (FAW) standards and consumers willingness-to-pay (WTP) for thus enhanced standards. The analysis is based on Discrete Choice Experiments with nearly identical choice sets for both farmers (N=140) and consumers (N=775). Based on preference estimates from a random parameter logit (RPL) model, supply and demand curves for high-welfare pork in Germany are estimated and market equilibria are derived for alternative levels of FAW. We find that estimates of WTP are significantly positive for all FAW attributes. By contrast, our model revealed significant WTA estimates only for surface area per pig and the amount of bedding material on offer, but not for the other FAW attributes. Market simulations for high-welfare pork indicate increasing divergence between demand and supply with rising FAW standards. We estimate a market share of 49% for pork produced in compliance with an entry-level FAW programme with standards only slightly above the legal minimum. Programmes with more demanding standards are estimated to gain much smaller market shares. Keywords Farm animal welfare, Discrete Choice Experiment, Random Parameter Logit, market simulation, common elicitation format. Acknowledgement :

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-env and nep-exp
Date: 2018-07
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