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Demand for farm animal welfare and producer implications: Results from a field experiment in Michigan

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  • Ortega, David L.
  • Wolf, Christopher A.

Abstract

This study utilizes a Becker-DeGroot-Marschak (BDM) mechanism to assess Michigan consumer demand for animal welfare practices. Results are examined in the context of changing farm production costs and producer marketing margins. We find that while consumers are willing to pay significant premiums for animal welfare standards, failing to account for the costs associated with producing the entire animal under the new system could lead to suboptimal policy that negatively affects producer welfare. Our results suggest that consumer premiums for animal welfare are product specific and that WTP estimates should not be generalized to the entire animal. We discuss policy implications of our findings and highlight the importance of considering producer costs when evaluating consumer demand for farm animal welfare practices.

Suggested Citation

  • Ortega, David L. & Wolf, Christopher A., 2018. "Demand for farm animal welfare and producer implications: Results from a field experiment in Michigan," Food Policy, Elsevier, vol. 74(C), pages 74-81.
  • Handle: RePEc:eee:jfpoli:v:74:y:2018:i:c:p:74-81
    DOI: 10.1016/j.foodpol.2017.11.006
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    References listed on IDEAS

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    Cited by:

    1. Chen, Junhong & Ortega, David L. & Wang, Hong Holly, 2018. "Does Animal Welfare Matter to Consumers in Emerging Countries? Evidence from China," 2018 Annual Meeting, August 5-7, Washington, D.C. 274069, Agricultural and Applied Economics Association.
    2. David L. Ortega & Robert S. Shupp & Rodolfo M. Nayga & Jayson L. Lusk, 2018. "Mitigating overbidding behavior in agribusiness and food marketing research: Results from induced value hybrid auction experiments," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 887-893, October.
    3. Lichters, Marcel & Wackershauser, Verena & Han, Shixing & Vogt, Bodo, 2019. "On the applicability of the BDM mechanism in product evaluation," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 1-7.
    4. Hopkins, Kelsey A. & McKendree, Melissa G. S. & Rice, Emma D., 2020. "Understanding the U.S. Publics’ Voting on Animal Welfare and Genetically Modified Organism Labeling Ballot Initiatives," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304519, Agricultural and Applied Economics Association.
    5. Ochs, Dan & Wolf, Christopher A. & Widmar, Nicole Olynk & Bir, Courtney & Lai, John, 2019. "Hen housing system information effects on U.S. egg demand," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    6. Felix Zoll & Katharina Diehl & Rosemarie Siebert, 2019. "Integrating Sustainability Goals in Innovation Processes: Applying a Decision Support Tool in a Dual-Purpose Chicken Case Study," Sustainability, MDPI, Open Access Journal, vol. 11(14), pages 1-15, July.
    7. Marescotti, Maria Elena & Caputo, Vincenzina & Demartini, Eugenio & Gaviglio, Anna, 2020. "Consumer preferences for wild game cured meat label: do attitudes towards animal welfare matter?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(4), June.

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