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Importance of EU Label Requirements: An Application of Ordered Probit Models to Belgium Beef Labels

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  • Verbeke, Wim
  • Ward, Ronald W.

Abstract

The objective of this paper is to determine which information cues related to quality and origin really attract consumer interest, specified as the level of attention paid to and perceived importance attached to label cues. The focus is (1) on indications of quality through quality marks, (2) on indications referring to the mandatory European beef labelling regulation, and (3) on indications reflecting origin. Data are collected from a sample of 278 beef consumers in Belgium. Ordered probit models are specified and estimated to assess the impact of household characteristics and a beef labeling information campaign. Findings reveal that consumer interest is generally low for traceability, moderate for origin and high for direct indications of quality. Interest in label cues is specifically low among younger males. Further, the publicity campaign had a measurable positive impact on consumer's attention to direct indications of quality and origin. Strategies including traceability for backing up on-label indications of quality are recommended.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 22077.

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Date of creation: 2003
Date of revision:
Handle: RePEc:ags:aaea03:22077

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Keywords: Agribusiness;

References

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  1. Caswell, Julie A. & Mojduszka, Eliza M., 1996. "Using Informational Labeling To Influence The Market For Quality In Food Products," Working Papers 25989, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
  2. Henson, Spencer & Caswell, Julie, 1999. "Food safety regulation: an overview of contemporary issues," Food Policy, Elsevier, vol. 24(6), pages 589-603, December.
  3. Noussair, C.N. & Robin, S. & Ruffieux, B., 2002. "Do consumers not care about biotech foods or do they just not read the labels?," Open Access publications from Tilburg University urn:nbn:nl:ui:12-378702, Tilburg University.
  4. Loureiro, Maria L. & McCluskey, Jill J. & Mittelhammer, Ronald C., 2001. "Assessing Consumer Preferences For Organic, Eco-Labeled, And Regular Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December.
  5. Jutta Roosen & Jayson L. Lusk & John A. Fox, 2003. "Consumer demand for and attitudes toward alternative beef labeling strategies in France, Germany, and the UK," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 77-90.
  6. Eliza M. Mojduszka & Julie A. Caswell, 2000. "A Test of Nutritional Quality Signaling in Food Markets Prior to Implementation of Mandatory Labeling," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 298-309.
  7. Caswell, Julie A., 1998. "How Labeling Of Safety And Process Attributes Affects Markets For Food," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), October.
  8. Lusk, Jayson L. & Fox, John A., 2002. "Consumer Demand For Mandatory Labeling Of Beef From Cattle Administered Growth Hormones Or Fed Genetically Modified Corn," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), April.
  9. Roe, Brian E. & Teisl, Mario F., 1998. "The Economics Of Labeling: An Overview Of Issues For Health And Environmental Disclosure," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), October.
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  11. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-54, July/Aug..
  12. 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.
  13. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
  14. Gellynck, Xavier & Verbeke, Wim, 2001. "Consumer Perception of Traceability in the Meat Chain," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(6).
  15. Kim, Sung-Yong & Nayga, Rodolfo M., Jr. & Capps, Oral, Jr., 2000. "The Effect Of Food Label Use On Nutrient Intakes: An Endogenous Switching Regression Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(01), July.
  16. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
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Cited by:
  1. Henneberry, Shida Rastegari & Armbruster, Walter J., 2003. "Emerging Roles For Food Labels: Inform, Protect, Persuade," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(03), November.
  2. 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.
  3. Bolliger, Conradin & Reviron, Sophie, 2008. "Consumer Willingness to Pay for Swiss Chicken Meat: An In-store Survey to Link Stated and Revealed Buying Behaviour," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44155, European Association of Agricultural Economists.
  4. Vandermersch, Mieke & Mathijs, Erik, 2004. "Consumer Willingness To Pay For Domestic Milk," Working Papers 31829, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
  5. Gracia, Azucena & Zeballos, Gabriela, 2005. "Attitudes of Retailers and Consumers toward the EU Traceability and Labeling System for Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(03), November.

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