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Do Food Quality Schemes and Net Price Premiums Go Together?

Author

Listed:
  • Monier-Dilhan Sylvette

    (US ODR, INRAE, 31326, Castanet-Tolosan, France)

  • Poméon Thomas

    (US ODR, INRAE, 31326, Castanet-Tolosan, France)

  • Böhm Michael

    (ECOZEPT, Freising, Germany)

  • Brečić Ruzica

    (University of Zagreb, Zagreb, Zagreb, Croatia)

  • Csillag Peter

    (ECO-SENSUS Research and Communication, Szekszárd, Hungary)

  • Donati Michele

    (University of Parma, Parma, Emilia-Romagna, Italy)

  • Ferrer-Pérez Hugo

    (Center for Agro Food Economy and Development, Barcelona, Spain)

  • Gauvrit Lisa

    (ECOZEPT, Montpellier, France)

  • Gil José M.

    (Center for Agro Food Economy and Development, Barcelona, Spain)

  • Hoàng Việt

    (University of Economics Ho Chi Minh City, Ho Chi Minh City, Viet Nam)

  • Lilavanichakul Apichaya

    (Department of Agro-Industrial Technology, Faculty of Agro-Industry, Kasetsart University, Bangkok, Thailand)

  • Majewski Edward

    (SGGW, Warsaw University of Life Sciences, Warszawa, Poland)

  • Malak-Rawlikowska Agata

    (Warsaw University of Life Sciences, Warszawa, Poland)

  • Mattas Konstadinos

    (Aristotle University of Thessaloniki, Thessaloniki, Greece)

  • Napasintuwong Orachos

    (Kasetsart University, Bangkok, Thailand)

  • Nguyễn An Quỳnh

    (University of Economics Ho Chi Minh City, Ho Chi Minh City, Viet Nam)

  • Nikolaou Kallirroi

    (Aristotle University of Thessaloniki, Thessaloniki, Greece)

  • Papadopoulos Ioannis

    (Aristotle University of Thessaloniki, Thessaloniki, Greece)

  • Pascucci Stefano

    (University of Exeter Environment and Sustainability Institute, Penryn, Cornwall, United Kingdom of Great Britain and Northern Ireland)

  • Peerlings Jack

    (Wageningen Universiteit, Wageningen, Gelderland, Netherlands)

  • Ristic Bojan

    (University of Belgrade, Beograd, Beograd, Serbia)

  • Steinnes Kamilla

    (HiOA, National Institute for Consumer Research, Oslo, Norway)

  • Stojanovic Zaklina

    (University of Belgrade, Beograd, Beograd, Serbia)

  • Tomić Maksan Marina

    (University of Zagreb, Zagreb, Zagreb, Croatia)

  • Török Áron

    (Corvinus University of Budapest, Budapest, Hungary)

  • Veneziani Mario

    (University of Parma, Parma, Emilia-Romagna, Italy)

  • Vittersø Gunnar

    (HiOA, National Institute for Consumer Research, Oslo, Norway)

  • Bellassen Valentin

    (CESAER, AgroSup Dijon, INRAE, 21000, Dijon, France)

Abstract

This article addresses the issue of the profitability of Food Quality Scheme (FQS) products as compared to reference products, which are defined as analogous products without quality label. We approach this question by taking into account the level of the value chain (upstream, processing, and downstream), the sector (vegetal, animal, seafood) and the type of FQS (PGI, PDO, Organic). We collected original data for several products produced in selected European countries, as well as in Thailand and Vietnam. Comparisons depending on value chain level, sector and FQS are possible by using two comparable indicators: price premium and net price premium (including cost differential). The following principal conclusions were reached: 1) Price is higher for FQS products than for the reference products, regardless of the production level, the type of FQS or the sector; 2) Price premiums generated by FQS do not differ along the value chain, nor between sectors (vegetal, animal or seafood/fish); 3) Price premium for organic products is significantly higher than for PGI products, and this conclusion holds at upstream and processing levels, taking into account the costs directly related to production; 4) All organic products and almost all PDO and PGI products analysed benefit from a positive quality rent; 5) At upstream level and processing level, the relative weight of intermediate consumption in the cost structure is lower for organic products than for reference products.

Suggested Citation

  • Monier-Dilhan Sylvette & Poméon Thomas & Böhm Michael & Brečić Ruzica & Csillag Peter & Donati Michele & Ferrer-Pérez Hugo & Gauvrit Lisa & Gil José M. & Hoàng Việt & Lilavanichakul Apichaya & Majewsk, 2021. "Do Food Quality Schemes and Net Price Premiums Go Together?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 19(2), pages 79-94, December.
    • Handle: RePEc:bpj:bjafio:v:19:y:2021:i:2:p:79-94:n:7
    DOI: 10.1515/jafio-2019-0044
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    Cited by:

    1. Meng Wang & Jihong Ge & Xuesen Fan & Wuyang Hu, 2025. "Price premiums for geographical indication under the coexistence of self‐claims and certification," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 69(2), pages 422-439, April.
    2. Viet Hoang & Vinh Nguyen, 2023. "Determinants of small farmers' participation in contract farming in developing countries: A study in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 836-853, July.
    3. Bellassen, Valentin & Drut, Marion & Hilal, Mohamed & Bodini, Antonio & Donati, Michele & de Labarre, Matthieu Duboys & Filipović, Jelena & Gauvrit, Lisa & Gil, José M. & Hoang, Viet & Malak-Rawlikows, 2022. "The economic, environmental and social performance of European certified food," Ecological Economics, Elsevier, vol. 191(C).

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    Keywords

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    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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