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Consumer Willingness-To-Pay For Farm Animal Welfare In Germany - The Case Of Broiler

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  • Makdisi, Fadi
  • Marggraf, Rainer
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    Abstract

    Estimating the value consumers place on farm animal welfare (FAW) can predict the extent to which consumers are ready to support policy changes aimed at improving the welfare of farm animals and developing animal-friendly production systems that can also compete on markets. This study aimed at exploring consumer preferences and willingness-to-pay (WTP) for broiler meat in Germany which is certified as having been produced under a system that caters for FAW. In addition, logistic and linear regression models were estimated to examine the factors affecting consumers’ decision to buy certified FAW products. The data was obtained from a survey of 300 German broiler consumers, which was designed using the contingent valuation methodology. The results showed that 82% of the respondents were ready to buy certified FAW products. A majority of these (95%) were willing to pay an extra sum of about €1.5 for 1 kg of the certified FAW broiler fillets. This represents a price increase of about 27% in comparison with the actual price of conventional broiler fillets. The WTP estimates reveal that there is a potential for improvement of FAW standards in conventional broiler production. The magnitude of these estimates, however, shows that consumer WTP is below the actual price premium demanded by producers for existing animal-friendly programs for broiler production. This explains why the market for certified FAW broilers fails and calls for a policy change towards higher minimum standards of broiler welfare. Ziel dieser Studie ist es, Erkenntnisse über die Präferenzen der deutschen Verbraucher für das Wohlergehen von Nutztieren (farm animal welfare FAW) zu gewinnen. Erforscht wurde die Zahlungsbereitschaft für Hähnchenfleisch, welches FAW zertifiziert produziert wird. Außerdem wurden logistische und lineare Regressionsmodelle geschätzt, um die Faktoren zu bestimmen, welche die Verbraucher bei ihrer Kaufentscheidung für FAW zertifizierte Produkte beeinflussen. Die Daten wurden durch eine Umfrage bei 300 deutschen Hähnchenfleischverbrauchern ermittelt, wobei die kontingente Bewertungsmethode verwendet wurde. Die Ergebnisse zeigen, daß 82 % der Befragten bereit waren, FAW zertifizierte Produkte zu kaufen. Von diesen war die überwiegende Mehrheit (95 %) bereit, einen zusätzlichen Betrag von ca. 1,50 € pro kg für FAW zertifizierte Hähnchenfilets zu zahlen. Dies stellt einen Preisanstieg von ca. 27 % dar im Vergleich zu dem aktuellen Preis für konventionell produzierte Hähnchenfilets. Die zusätzliche Zahlungsbereitschaft der Verbraucher liegt jedoch unterhalb der aktuellen Preisprämie, die die Hersteller bestehender FAW-Programme in der Hähnchenproduktion verlangen. Dies erklärt, warum der Markt für zertifiziertes FAW-Geflügelfleisch nicht erfolgreich ist.

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    Bibliographic Info

    Paper provided by German Association of Agricultural Economists (GEWISOLA) in its series 51st Annual Conference, Halle, Germany, September 28-30, 2011 with number 115359.

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    Date of creation: 2011
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    Handle: RePEc:ags:gewi11:115359

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    Keywords: farm animal welfare (FAW); broiler; contingent valuation method (CVM); willingness-to-pay (WTP); Agribusiness;

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    1. Richard Carson & Nicholas Flores & Norman Meade, 2001. "Contingent Valuation: Controversies and Evidence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 19(2), pages 173-210, June.
    2. Giuseppe Nocella & Lionel Hubbard & Riccardo Scarpa, 2007. "Consumer trust and willingness to pay for certified animal-friendly products," Working Papers in Economics 07/09, University of Waikato, Department of Economics.
    3. Bennett, Richard & Blaney, Ralph, 2002. "Social consensus, moral intensity and willingness to pay to address a farm animal welfare issue," Journal of Economic Psychology, Elsevier, vol. 23(4), pages 501-520, August.
    4. Rolfe, John, 1999. "Ethical Rules and the Demand for Free Range Eggs," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 29(2), pages 187-206, September.
    5. Bennett, Richard M. & Blaney, Ralph J. P., 2003. "Estimating the benefits of farm animal welfare legislation using the contingent valuation method," Agricultural Economics, Blackwell, vol. 29(1), pages 85-98, July.
    6. Richard Carson & Robert Mitchell & Michael Hanemann & Raymond Kopp & Stanley Presser & Paul Ruud, 2003. "Contingent Valuation and Lost Passive Use: Damages from the Exxon Valdez Oil Spill," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(3), pages 257-286, July.
    7. Richard Bennett & Douglas Larson, 1996. "Contingent Valuation Of The Perceived Benefits Of Farm Animal Welfare Legislation: An Exploratory Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 224-235.
    8. Theuvsen, Ludwig & Essmann, Sandra & Brand-Sassen, Henning, 2005. "Livestock Husbandry between Ethics and Economics: Finding a Feasible Way Out by Target Costing?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24598, European Association of Agricultural Economists.
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