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Can Country-of-Origin Labeling Succeed as a Marketing Tool for Produce? Lessons from Three Case Studies

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  • Colin Carter
  • Barry Krissoff
  • Alix Peterson Zwane

Abstract

"This paper draws on the theory of product differentiation in a trade context and uses three case studies to highlight the conditions necessary for a successful geographical-origin branding strategy for farm produce in the United States. In so doing, the U.S. country-of-origin labeling (COOL) scheme as a branding strategy for produce is assessed. The paper argues that the use of geographic identifiers to achieve product differentiation is viable, but any claim that such differentiation will prove useful at the country level for farm produce seems likely to be misplaced. In order to raise prices, a key complement to branding is some restriction on the volume of product going out under the brand name. These restrictions may be accomplished by supply controls, quality controls, or entry barriers, but will not be available to all U.S. products currently hoping to gain from mandatory COOL." Copyright 2006 Canadian Agricultural Economics Society.

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Bibliographic Info

Article provided by Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie in its journal Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie.

Volume (Year): 54 (2006)
Issue (Month): 4 (December)
Pages: 513-530

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Handle: RePEc:bla:canjag:v:54:y:2006:i:4:p:513-530

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Cited by:
  1. Wen S. Chern & Huei-Ching Lin, 2010. "Analysis of Country of Origin Labeling for Food Products in Taiwan using Auction Experiment," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0788, Institute of Social and Economic Research, Osaka University.
  2. Alexander E. Saak, 2011. "A Model of Labeling with Horizontal Differentiation and Cost Variability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 93(4), pages 1131-1150.
  3. Lewis, Karen E. & Grebitus, Carola, 2013. "Consumers’ Attitudes towards Country of Origin Labeling for Sugar," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 150162, Agricultural and Applied Economics Association.
  4. Dentoni, Domenico & Menozzi, Davide & Capelli, Maria Giacinta, 2012. "Group heterogeneity and cooperation on the geographical indication regulation: The case of the “Prosciutto di Parma” Consortium," Food Policy, Elsevier, Elsevier, vol. 37(3), pages 207-216.
  5. Menapace, Luisa & Colson, Gregory J. & Grebitus, Carola & Facendola, Maria, 2009. "Consumer Preferences for Country-Of-Origin, Geographical Indication, and Protected Designation of Origin Labels," Staff General Research Papers, Iowa State University, Department of Economics 13122, Iowa State University, Department of Economics.
  6. Dentoni, Domenico & Menozzi, Davide & Capelli, Maria Giacinta, 2010. "Heterogeneity of Members’ Characteristics and Cooperation within Producer Groups Regulating Geographical Indications: The Case of the “Prosciutto di Parma” Consortium," 116th Seminar, October 27-30, 2010, Parma, Italy, European Association of Agricultural Economists 95203, European Association of Agricultural Economists.
  7. Wen Chern & Huei-Ching Lin, 2012. "Taiwanese Consumer Valuation of Country of Origin Labeling Using Auction Experiment with Tasting," Journal of Family and Economic Issues, Springer, Springer, vol. 33(2), pages 184-198, June.
  8. Joseph, Siny & Lavoie, Nathalie, 2008. "Effectiveness of COOL in the U.S. Seafood Industry," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 6260, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Innes, Brian G. & Kerr, William A. & Hobbs, Jill E., 2008. "International Product Differentiation Through a Country Brand: An Economic Analysis of National Branding as a Marketing Strategy for Agricultural Products," Trade Policy Briefs, Canadian Agricultural Trade Policy Research Network 43470, Canadian Agricultural Trade Policy Research Network.
  10. Chern, Wen S. & Lin, Huei-Ching, 2011. "Analysis of Country of Origin Labeling for Food Products in Taiwan Using Auction Experiment with Tasting," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania, Agricultural and Applied Economics Association 103219, Agricultural and Applied Economics Association.
  11. Verbeke, Wim & Roosen, Jutta, 2009. "Market Differentiation Potential of Country-of-origin, Quality and Traceability Labeling," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, Estey Centre for Law and Economics in International Trade, vol. 10(1).
  12. Perret, Anna O. & Thevenod-Mottet, Erik, 2010. "The Florida oranges local agro-food system – Geographical Indication or Commodity?," 116th Seminar, October 27-30, 2010, Parma, Italy, European Association of Agricultural Economists 95215, European Association of Agricultural Economists.
  13. Chern, Wen S. & Chang, Chun-Yu, 2009. "Benefit Evaluation of the Country of Origin Labeling in Taiwan: Results from Auction Experiment," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin, Agricultural and Applied Economics Association 49215, Agricultural and Applied Economics Association.

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