 CONSUMER WILLINGNESS TO PAY FOR DOMESTIC MILKMieke Vandermersch and Erik Mathijs No 31829, Working Papers from Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics Abstract: Dairy farmers' profit margins are under pressure due to the downward trend of EU commodity prices for fluid milk and the increasingly powerful retail sector, in combination with increasing production costs. A likely solution to counter small margins is to add value to raw milk. This paper investigates the option of using a domestic origin-certification to upgrade the value of milk. Data stem from a consumer survey, conducted at the three largest supermarket chains in Flanders (Belgium). The results show evidence for a latent demand for domestic milk. Based on actually purchased brands in combination with top-of-mind attributes, two consumer types were distinguished (price-shoppers and added-value seekers), each with a different behaviour concerning domestic milk. Socio-demographic, attitudinal and behavioural variables were found to influence the probability that a consumer is willing to pay a premium for domestic origin-certified milk. But, the influence of these variables differed between both consumer types as well as when a different bid level was proposed. Keywords: Consumer/Household Economics; Demand and Price Analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:kucawp:31829 Access Statistics for this paper More papers in Working Papers from Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics Contact information at EDIRC. |
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