IDEAS home Printed from https://ideas.repec.org/a/ags/sieaea/305217.html
   My bibliography  Save this article

Does Italian origin really determine a price premium for fluid milk? Evidences from a hedonic price analysis

Author

Listed:
  • Trestini, Samuele
  • Stiletto, Alice

Abstract

The regulation 1169/2011, which aims to protect the consumers in relation to food information, stresses the fact that the country of origin is become a key attribute for consumers in their purchasing decision. In 2014, the Italian Ministry of Agricultural, Food and Forestry Policies, with the Decree of 9 December 2016 − based on art. 26 of Reg. 1169/2011 – introduced the obligation of labelling the country origin of milk used in all dairy products and therefore for the first time for uht milk. In this context, the aim of the study is to evaluate the price premium of different quality attributes on uht milk sold in Italy, with particular regard to the country of origin of milk. From the analysis, it emerges that Italian origin of milk has a significant and positive effect on price, together with the type of retailer (i.e. hypermarket), notorious brands, plastic packaging, high and middle placement on the shelves, organic attribute and the enrichment with omega 3, phosphorus or fibre.

Suggested Citation

  • Trestini, Samuele & Stiletto, Alice, 2020. "Does Italian origin really determine a price premium for fluid milk? Evidences from a hedonic price analysis," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 22(1), June.
    • Handle: RePEc:ags:sieaea:305217
    DOI: 10.22004/ag.econ.305217
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/305217/files/10064-40363-2-PB.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.305217?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cathy A. Roheim & Frank Asche & Julie Insignares Santos, 2011. "The Elusive Price Premium for Ecolabelled Products: Evidence from Seafood in the UK Market," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(3), pages 655-668, September.
    2. Chung L. Huang & Biing-Hwan Lin, 2007. "A Hedonic Analysis of Fresh Tomato Prices among Regional Markets," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 783-800.
    3. Verena Otter & Bianca Prechtel & Ludwig Theuvsen, 2014. "The Country-of-Origin Effect for Chocolate made from Ecuadorian Cocoa: An Empirical Analysis of Consumer Perceptions," Economia agro-alimentare, FrancoAngeli Editore, vol. 16(3), pages 43-60.
    4. Kenneth E. McConnell & Ivar E. Strand, 2000. "Hedonic Prices for Fish: Tuna Prices in Hawaii," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 133-144.
    5. Maria Rosita Cagnina & Marta Cosmina & Gianluigi Gallenti & Francesco Marangon & Federico Nassivera & Stefania Troiano, 2018. "The role of information in consumers? behavior: A survey on the counterfeit food products," Economia agro-alimentare, FrancoAngeli Editore, vol. 20(2), pages 221-231.
    6. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    7. McCluskey, Jill J., 2000. "A Game Theoretic Approach to Organic Foods: An Analysis of Asymmetric Information and Policy," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(1), pages 1-9, April.
    8. Richard Carew & Wojciech J. Florkowski & Elwin G. Smith, 2012. "Hedonic Analysis of Apple Attributes in Metropolitan Markets of Western Canada," Agribusiness, John Wiley & Sons, Ltd., vol. 28(3), pages 293-309, June.
    9. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    10. Julia Bronnmann & Julia Hoffmann, 2018. "Product differentiation in the German soft drink market: which attributes matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 25(14), pages 968-971, August.
    11. Costanigro, Marco & McCluskey, Jill J. & Mittelhammer, Ronald C., 2006. "Identifying submarket in the wine industry: a multivariate approach to hedonic regression," 2006 Annual meeting, July 23-26, Long Beach, CA 21370, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Serena Szathvary & Samuele Trestini, 2014. "A Hedonic Analysis of Nutrition and Health Claims on Fruit Beverage Products," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(2), pages 505-517, June.
    13. Dengjun Zhang & Geir Sogn-Grundvåg & Frank Asche & James A. Young, 2018. "Eco-Labeling and Retailer Pricing Strategies: The U.K. Haddock Market," Sustainability, MDPI, vol. 10(5), pages 1-13, May.
    14. Satimanon, Thasanee & Weatherspoon, Dave D., 2010. "Hedonic Analysis of Sustainable Food Products," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 13(4), pages 1-17.
    15. Kennedy, Peter E, 1981. "Estimation with Correctly Interpreted Dummy Variables in Semilogarithmic Equations [The Interpretation of Dummy Variables in Semilogarithmic Equations]," American Economic Review, American Economic Association, vol. 71(4), pages 801-801, September.
    16. Marco Costanigro & Jill J. McCluskey & Ron C. Mittelhammer, 2007. "Segmenting the Wine Market Based on Price: Hedonic Regression when Different Prices mean Different Products," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 454-466, September.
    17. Abraben, Lane A. & Grogan, Kelly A. & Gao, Zhifeng, 2017. "Organic price premium or penalty? A comparative market analysis of organic wines from Tuscany," Food Policy, Elsevier, vol. 69(C), pages 154-165.
    18. Trestini, Samuele & Giampietri, Elisa & Szathvary, Serena & Dal Bianco, Andrea, 2018. "Insights on the Alleged Imitation of Prosecco Wine Name: The Case of the German Market," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(4), August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Santeramo, Fabio Gaetano & Manno, Roberto & Tappi, Marco & Lamonaca, Emilia, 2022. "Trademarks and Territorial Marketing: Retrospective and Prospective Analyses of the trademark Prodotti di Qualità," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 24(1), June.
    2. Valentina Maria Merlino & Stefano Massaglia & Simone Blanc & Filippo Brun & Danielle Borra, 2022. "Differences between Italian specialty milk in large-scale retailing distribution," Economia agro-alimentare, FrancoAngeli Editore, vol. 24(2), pages 1-28.
    3. Merlino, Valentina Maria & Mastromonaco, Giulia & Borra, Danielle & Blanc, Simone & Brun, Filippo & Massaglia, Stefano, 2021. "Planning of the cow milk assortment for large retail chains in North Italy: A comparison of two metropolitan cities," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    4. Fabio Boncinelli & Andrea Dominici & Federico Bondioni & Enrico Marone, 2024. "Consumers bahavior towards the country of origin labeling policy: The case of the pasta market in Italy," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 46-69, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xu, Xun & Loke, Matthew K. & Leung, PingSun, 2015. "Is There a Price Premium for Local Food? The Case of the Fresh Lettuce Market in Hawaii," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-14, April.
    2. Trestini, Samuele & Giampietri, Elisa & Szathvary, Serena & Dal Bianco, Andrea, 2018. "Insights on the Alleged Imitation of Prosecco Wine Name: The Case of the German Market," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(4), August.
    3. Alessandro Bonanno, 2016. "A Hedonic Valuation of Health and Nonhealth Attributes in the U.S. Yogurt Market," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 299-313, July.
    4. Julia Bronnmann & Frank Asche, 2016. "The Value of Product Attributes, Brands and Private Labels: An Analysis of Frozen Seafood in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 231-244, February.
    5. Alessandro Bonanno & Francesco Bimbo & Marco Costanigro & Alfons Oude Lansink & Rosaria Viscecchia, 2019. "Credence attributes and the quest for a higher price – a hedonic stochastic frontier approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(2), pages 163-192.
    6. Bimbo, Francesco & Bonanno, Alessandro & Viscecchia, Rosaria & Nardone, Gianluca, 2014. "Market valuation of health claims’ types and strength: the Italian yogurt market," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182738, European Association of Agricultural Economists.
    7. Dengjun Zhang & Geir Sogn-Grundvåg & Frank Asche & James A. Young, 2018. "Eco-Labeling and Retailer Pricing Strategies: The U.K. Haddock Market," Sustainability, MDPI, vol. 10(5), pages 1-13, May.
    8. Matthias Staudigel & Aleksej Trubnikov, 2022. "High price premiums as barriers to organic meat demand? A hedonic analysis considering species, cut and retail outlet," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 309-334, April.
    9. Smed, Sinne & Hansen, Lars Garn, 2018. "Consumer Valuation of Health Attributes in Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(2), May.
    10. Vidyahwati Tenrisanna & Mohammad Mafizur Rahman & Rasheda Khanam, 2016. "Factors Affecting Consumers' Willingness to Pay for Imported Offal in Indonesia: A Case Study for Makassar City," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 15(2), pages 145-159, December.
    11. Luigi Roselli & Domenico Carlucci & Bernardo Corrado Gennaro, 2016. "What Is the Value of Extrinsic Olive Oil Cues in Emerging Markets? Empirical Evidence from the U.S. E‐Commerce Retail Market," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 329-342, July.
    12. Asche, Frank & Bronnmann, Julia & Cojocaru, Andreea L., 2021. "The value of responsibly farmed fish: A hedonic price study of ASC-certified whitefish," Ecological Economics, Elsevier, vol. 188(C).
    13. Ankamah-Yeboah, Isaac & Nielsen, Max & Nielsen, Rasmus, 2016. "Price premium of organic salmon in Danish retail sale," Ecological Economics, Elsevier, vol. 122(C), pages 54-60.
    14. Ankamah-Yeboah Isaac & Max Nielsen & Rasmus Nielsen, 2015. "Organic Salmon – Considered a Fisheries or Agricultural Product Among Consumers?," 2015 EAFE (European Association of Fisheries Economists) Conference Papers 003, Nisea.
    15. Min-Yang Lee, 2014. "Hedonic Pricing of Atlantic Cod: Effects of Size, Freshness, and Gear," Marine Resource Economics, University of Chicago Press, vol. 29(3), pages 259-277.
    16. Vincent Hoang & Takao Iida & Shigeru Matsumoto & Natsuki Watanabe & Clevo Wilson, 2014. "Market penetration of imported agricultural products: A hedonic analysis of the Japanese table wine market," Working Papers e083, Tokyo Center for Economic Research.
    17. Teuber, Ramona, 2010. "Estimating the Demand for Sensory Quality – Theoretical Considerations and an Empirical Application to Specialty Coffee," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(03), pages 1-14, September.
    18. Bosbach, Moritz & Maietta, Ornella Wanda, 2019. "The Implicit Price for Fair Trade Coffee: Does Social Capital Matter?," Ecological Economics, Elsevier, vol. 158(C), pages 34-41.
    19. Martinez-Carrasco, Laura & Brugarolas, Margarita & Martinez-Poveda, Africa & Ros, María del Mar & Ruíz Martínez, Juan José, 2014. "Factores determinantes del precio de los tomates de variedades tradicionales: un análisis de precios hedónicos," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 14(02), pages 1-15, December.
    20. Empen, Janine, 2011. "Preissetzung Auf Dem Deutschen Joghurtmarkt: Eine Hedonische Analyse," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115362, German Association of Agricultural Economists (GEWISOLA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:sieaea:305217. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/sieaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.