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Valuation of Safety-Branded and Traceable Free Range Chicken in Ha Noi: Results from a Field Experiment

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Author Info
Ifft, Jennifer
Roland-Holst, David
Zilberman, David

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Abstract

The valuation of traceable or safety-branded food by consumers in developing countries affected by diseases such as avian influenza, or with food safety issues in general, is very difficult to identify. Products that have safety-branding are not common, and food is usually purchased by bargaining at informal markets. However, valuation of traceability has important implications for livestock disease policies as well as agricultural sector development. Through developing a short-term certified supply chain for free range chicken in Hanoi, we were able to conduct a combined field experiment and detailed household survey to measure the valuation of this type of poultry. We find that consumers in urban Hanoi on average have a welfare gain of about $1 per whole chicken purchase for safety-branding and traceability, which translates into a potential annual consumer welfare gain of $66 million for such characteristics.

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Publisher Info
Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49444.

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Date of creation: 2009
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Handle: RePEc:ags:aaea09:49444

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Related research
Keywords: field experiments; avian influenza; Vietnam; food safety; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; C93; D12; Q13; Q18;

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  2. David Dickinson & DeeVon Bailey, 2002. "Meat Traceability: Are U.S. Consumers Willing To Pay For It?," Working Papers 2002-07, Utah State University, Department of Economics. [Downloadable!]
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  3. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December. [Downloadable!] (restricted)
  4. Masayoshi Maruyama & Le Viet Trung, 2007. "Supermarkets in Vietnam: Opportunities and Obstacles," Asian Economic Journal, East Asian Economic Association, vol. 21(1), pages 19-46, 03. [Downloadable!] (restricted)
  5. Lusk, Jayson L. & Norwood, F. Bailey & Pruitt, Ross, 2006. "Consumer Demand for a Ban on Antibiotic Drug Use in Pork Production," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35273, Southern Agricultural Economics Association. [Downloadable!]
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  6. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November. [Downloadable!] (restricted)
  7. Maria L. Loureiro & Jill J. McCluskey & Ron C. Mittelhammer, 2003. "Are Stated Preferences Good Predictors of Market Behavior?," Land Economics, University of Wisconsin Press, vol. 79(1), pages 44-45. [Downloadable!] (restricted)
  8. Noussair, Charles & Robin, Stephane & Ruffieux, Bernard, 2002. "Do consumers not care about biotech foods or do they just not read the labels?," Economics Letters, Elsevier, vol. 75(1), pages 47-53, March. [Downloadable!] (restricted)
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  9. Mdafri, Abdellah & Wade Brorsen, B., 1993. "Demand for red meat, poultry, and fish in Morocco: an almost ideal demand system," Agricultural Economics, Blackwell, vol. 9(2), pages 155-163, August. [Downloadable!] (restricted)
  10. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132. [Downloadable!] (restricted)
  11. Pingali, Prabhu, 2007. "Westernization of Asian diets and the transformation of food systems: Implications for research and policy," Food Policy, Elsevier, vol. 32(3), pages 281-298, June. [Downloadable!] (restricted)
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