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Market Differentiation Potential of Country-of-origin, Quality and Traceability Labeling

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  • Verbeke, Wim
  • Roosen, Jutta

Abstract

Product labeling has gained considerable attention recently, as a means to both provide product-specific information and reduce quality uncertainty faced by consumers, as well as from a regulatory point of view. This article focuses on whether and to what extent origin, quality and traceability labeling is an appropriate way to differentiate food products. The focus is on fresh meat and fresh fish, two mainly generic food product categories with a high degree of credence character. Insights into the potential for market differentiation through origin, quality and traceability labeling are provided and discussed using primary data collected during the period 2000-2005 by means of four consumer surveys. In general, direct indications of quality, including mandatory information cues such as best-before dates and species names, but also including quality marks, are found to be more appealing to consumers in general than origin labeling, and the latter more than traceability. The different studies yield the conclusion that the market differentiation potential of origin and quality labeling pertains mainly to a product’s healthiness appeal, and this potential seems stronger for meat than for fish. The differentiation potential of traceability per se is rather limited. Instead, traceability is needed as the regulatory and logistic backbone for providing guarantees related to origin and quality.

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Bibliographic Info

Article provided by Estey Centre for Law and Economics in International Trade in its journal Estey Centre Journal of International Law and Trade Policy.

Volume (Year): 10 (2009)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:ags:ecjilt:48790

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Related research

Keywords: consumer; country of origin; labeling; quality; traceability; Food Consumption/Nutrition/Food Safety; International Relations/Trade;

References

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  1. Wim Verbeke, 2005. "Agriculture and the food industry in the information age," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 347-368, September.
  2. Roosen, Jutta & Lusk, Jayson L. & Fox, John A., 2001. "Consumer Demand For And Attitudes Toward Alternative Beef Labeling Strategies In France, Germany, And The Uk," 2001 Annual meeting, August 5-8, Chicago, IL 20643, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Maria Luz Loureiro & Jill J. McCluskey, 2000. "Assessing consumer response to protected geographical identification labeling," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 309-320.
  4. Klaus G. Grunert, 2005. "Food quality and safety: consumer perception and demand," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 369-391, September.
  5. Jayson L. Lusk & Jason Brown & Tyler Mark & Idlir Proseku & Rachel Thompson & Jody Welsh, 2006. "Consumer Behavior, Public Policy, and Country-of-Origin Labeling," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 284-292.
  6. Céline Bonnet, 2001. "Assessing consumer response to Protected Designation of Origin labelling: a mixed multinomial logit approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(4), pages 433-450, December.
  7. Jill E. Hobbs & DeeVon Bailey & David L. Dickinson & Morteza Haghiri, 2005. "Traceability in the Canadian Red Meat Sector: Do Consumers Care?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 47-65, 03.
  8. Becker, Tilman C., 2009. "European Food Quality Policy: The Importance of Geographical Indications, Organic Certification and Food Quality Assurance Schemes in European Countries," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(1).
  9. Koert Van Ittersum & Matthew T. G. Meulenberg & Hans C. M. Van Trijp & Math J. J. M. Candel, 2007. "Consumers’ Appreciation of Regional Certification Labels: A Pan-European Study," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(1), pages 1-23, 02.
  10. Verbeke, W. & Ward, R. W. & Avermaete, T., 2002. "Evaluation of publicity measures relating to the EU beef labelling system in Belgium," Food Policy, Elsevier, vol. 27(4), pages 339-353, August.
  11. Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
  12. Loureiro, Maria L. & Umberger, Wendy J., 2007. "A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability," Food Policy, Elsevier, vol. 32(4), pages 496-514, August.
  13. Colin Carter & Barry Krissoff & Alix Peterson Zwane, 2006. "Can Country-of-Origin Labeling Succeed as a Marketing Tool for Produce? Lessons from Three Case Studies," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 513-530, December.
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Citations

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Cited by:
  1. Bremmers, Harry J. & van der Meulen, Bernd M.J. & Sredojevi, Zorica & Wijnands, Jo H.M., 2012. "Legal-Economic Barriers to Price Transfers in Food Supply Chains," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 6.
  2. Demont, Matty & Rutsaert, Pieter & Ndour, Maimouna & Verbeke, Wim, 2013. "Reversing Urban Bias in African Rice Markets: Evidence from Senegal," World Development, Elsevier, vol. 45(C), pages 63-74.
  3. Saak, Alexander, 2011. "A model of labeling with horizontal differentiation and cost variability:," IFPRI discussion papers 1075, International Food Policy Research Institute (IFPRI).
  4. Lilavanichakul, Apichaya & Boecker, Andreas, 2013. "Consumer Acceptance of a New Traceability Technology: A Discrete Choice Application to Ontario Ginseng," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 16(4).
  5. Herrmann, Roland & Marauhn, Thilo & Teuber, Ramona, 2008. "Der Schutz geographischer Herkunftsangaben: Herausforderungen für agrarökonomische, rechtswissenschaftliche und interdisziplinäre Forschung," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 57(7).
  6. Verbeke, Wim & Pieniak, Zuzanna & Guerrero, Luis & Hersleth, Margrethe, 2012. "Consumers’ Awareness and Attitudinal Determinants of European Union Quality Label Use on Traditional Foods," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 2, August.
  7. Bremmers, Harry J., 2012. "An Integrated Analysis of Food Information to Consumers:," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144985, International European Forum on Innovation and System Dynamics in Food Networks.
  8. Viegas, Ines & Santos, Jose Manuel Lima & Fontes, Magda Aguiar, 2011. "Joint Production of Safer, Cleaner and Animal Friendlier Beef: Do Consumers Join it Too? - Insights from Focus Groups," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115551, European Association of Agricultural Economists.
  9. Egyir, Irene Susana & Adu-Nyako, Kofi & Okafor, Ralph, 2012. "The “Made in USA poultry label” and consumer choice in Ghana," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119745, Southern Agricultural Economics Association.

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