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Analysis of Consumer Preference for Milk Produced through Sustainable Farming: The Case of Mountainous Dairy Farming

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  • Kyungsoo Nam

    (Department of Food and Resource Economics, Korea University, Seoul 02841, Korea)

  • Heesun Lim

    (Department of Food and Resource Economics, Korea University, Seoul 02841, Korea)

  • Byeong-il Ahn

    (Department of Food and Resource Economics, Korea University, Seoul 02841, Korea)

Abstract

As income is rising and urbanization progressing, the consumption of meat and dairy products is increasing, especially in developing countries. However, increasing livestock production leads to challenges that need to be addressed, such as yielding environmental pollution and causing climate change. Due to these circumstances, the importance of sustainable livestock farming has been highlighted in order to effectively utilize natural resources and to protect the environment. We analyzed consumers’ preference and willingness to pay for milk, one of the representative dairy products, which was produced in a sustainable way. Among the various attributes of milk, marginal willingness to pay for “performing sustainability” through mountainous farming was estimated to be the biggest. The willingness to pay was revealed to be higher for the consumer group with a high awareness of sustainable farming than the consumer group with low awareness. The empirical results in this study suggest that it is important to consider the economic feasibility of dairy farming by forming a consensus with consumers through publicity and changing the production pattern to promote sustainability.

Suggested Citation

  • Kyungsoo Nam & Heesun Lim & Byeong-il Ahn, 2020. "Analysis of Consumer Preference for Milk Produced through Sustainable Farming: The Case of Mountainous Dairy Farming," Sustainability, MDPI, vol. 12(7), pages 1-15, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:3039-:d:343722
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    1. Leonardo Cei & Edi Defrancesco & Paola Gatto & Francesco Pagliacci, 2023. "Pay more for me, I’m from the mountains! The role of the EU Mountain Product term and other credence attributes in consumers’ valuation of lamb meat," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-21, December.
    2. Ivana Bassi & Matteo Carzedda & Enrico Gori & Luca Iseppi, 2022. "Rasch analysis of consumer attitudes towards the mountain product label," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-25, December.
    3. Diana Maria Ilie & Georgiana-Raluca Lădaru & Maria Claudia Diaconeasa & Mirela Stoian, 2021. "Consumer Choice for Milk and Dairy in Romania: Does Income Really Have an Influence?," Sustainability, MDPI, vol. 13(21), pages 1-17, November.
    4. Rashmit S. Arora & Daniel A. Brent & Edward C. Jaenicke, 2020. "Is India Ready for Alt-Meat? Preferences and Willingness to Pay for Meat Alternatives," Sustainability, MDPI, vol. 12(11), pages 1-20, May.

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