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Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?

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  • Julie A. Caswell

    ()
    (University of Massachusetts)

  • Siny Joseph

    ()
    (University of Massachusetts)

Abstract

The impact of consumer demand for quality on the agricultural and food system is an increased emphasis on quality differentiation but not all in the direction of upgrading quality. The more elite market segments are thriving and reaching growing numbers of consumers but the basic price/quality markets remain strong. Most recent economic studies find that consumers are willing to pay for food safety and other quality attributes, and for information about them. The magnitude of the valuations varies by food product, attribute, country, and study design. This literature and a case study of genetically modified foods suggest that consumer demand has a strong effect on agricultural and food trade.

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Bibliographic Info

Paper provided by University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy in its series Food Marketing Policy Center Research Reports with number 097.

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Length: 32 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:zwi:fpcrep:097

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Keywords: food quality; food safety; consumer demand; willingness to pay; international trade;

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References

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Cited by:
  1. Keisuke Hattori & Keisaku Higashida, 2011. "Misleading Advertising and Minimum Quality Standards," Discussion Paper Series, School of Economics, Kwansei Gakuin University 74, School of Economics, Kwansei Gakuin University, revised Aug 2011.
  2. 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).
  3. Tranter, R.B. & Bennett, R.M. & Costa, L. & Cowan, C. & Holt, G.C. & Jones, P.J. & Miele, M. & Sottomayor, M. & Vestergaard, J., 2009. "Consumers' willingness-to-pay for organic conversion-grade food: Evidence from five EU countries," Food Policy, Elsevier, Elsevier, vol. 34(3), pages 287-294, June.

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