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Market Opportunities for Animal-Friendly Milk in Different Consumer Segments

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  • Sophie de Graaf

    () (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, 9000 Ghent, Belgium
    Social Sciences Unit, Institute for Agricultural and Fisheries Research (ILVO), 9820 Merelbeke, Belgium
    Animal Sciences Unit, Institute for Agricultural and Fisheries Research (ILVO), 9090 Melle-Gontrode, Belgium)

  • Filiep Vanhonacker

    () (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, 9000 Ghent, Belgium
    Department of Applied Biosciences, Faculty of Bioscience Engineering, Ghent University, 9000 Ghent, Belgium)

  • Ellen J. Van Loo

    () (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, 9000 Ghent, Belgium)

  • Jo Bijttebier

    () (Social Sciences Unit, Institute for Agricultural and Fisheries Research (ILVO), 9820 Merelbeke, Belgium)

  • Ludwig Lauwers

    () (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, 9000 Ghent, Belgium
    Social Sciences Unit, Institute for Agricultural and Fisheries Research (ILVO), 9820 Merelbeke, Belgium)

  • Frank A. M. Tuyttens

    () (Animal Sciences Unit, Institute for Agricultural and Fisheries Research (ILVO), 9090 Melle-Gontrode, Belgium)

  • Wim Verbeke

    () (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, 9000 Ghent, Belgium)

Abstract

Consumers have increasing, but highly variable, interest in sustainability attributes of food, including ethical aspects, such as animal welfare. We explored market opportunities for animal-friendly cow’s milk based on segmentation (cluster) analysis. Flemish survey participants ( n = 787) were clustered ( n = 6) based on their intention to purchase (IP) animal-friendly milk, and their evaluation of cows’ welfare state (EV). Three market opportunity segments were derived from clusters and labelled as “high”, “moderate” and “limited”. Only 8% of the participants belong to the “high market opportunities” segment, characterized by a high IP and a low EV. The “limited” segment (44%) indicated a neutral to low IP and a positive EV. The “moderate” segment (48%) had a moderately positive IP and positive/negative EV. Reported willingness to pay, interest in information about the state of animal welfare and importance of the product attribute “animal welfare” differed among segments and were strongly related to IP. Most promising selling propositions about animal-friendly milk were related to pasture access. The high degree of differentiation within the Flemish milk market reveals market opportunities for animal-friendly milk, but for an effective market share increase supply of animal-friendly products needs to get more aligned with the heterogeneous demand.

Suggested Citation

  • Sophie de Graaf & Filiep Vanhonacker & Ellen J. Van Loo & Jo Bijttebier & Ludwig Lauwers & Frank A. M. Tuyttens & Wim Verbeke, 2016. "Market Opportunities for Animal-Friendly Milk in Different Consumer Segments," Sustainability, MDPI, Open Access Journal, vol. 8(12), pages 1-17, December.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:12:p:1302-:d:84947
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    References listed on IDEAS

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    1. Toma, Luiza & McVittie, Alistair & Hubbard, Carmen & Stott, Alistair W., 2009. "A Structural Equation Model of the Factors Influencing British Consumers’ Behaviour towards Animal Welfare," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58149, European Association of Agricultural Economists.
    2. Harvey, David & Hubbard, Carmen, 2013. "Reconsidering the political economy of farm animal welfare: An anatomy of market failure," Food Policy, Elsevier, vol. 38(C), pages 105-114.
    3. Vossler, Christian A. & Kerkvliet, Joe, 2003. "A criterion validity test of the contingent valuation method: comparing hypothetical and actual voting behavior for a public referendum," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 631-649, May.
    4. Van Loo, Ellen J. & Caputo, Vincenzina & Nayga, Rodolfo M. & Verbeke, Wim, 2014. "Consumers’ valuation of sustainability labels on meat," Food Policy, Elsevier, vol. 49(P1), pages 137-150.
    5. Carolina Liljenstolpe, 2008. "Evaluating animal welfare with choice experiments: an application to Swedish pig production," Agribusiness, John Wiley & Sons, Ltd., vol. 24(1), pages 67-84.
    6. Diamantopoulos, Adamantios & Schlegelmilch, Bodo B. & Sinkovics, Rudolf R. & Bohlen, Greg M., 2003. "Can socio-demographics still play a role in profiling green consumers? A review of the evidence and an empirical investigation," Journal of Business Research, Elsevier, vol. 56(6), pages 465-480, June.
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    Cited by:

    1. repec:gam:jsusta:v:9:y:2017:i:11:p:1999-:d:117212 is not listed on IDEAS
    2. repec:gam:jsusta:v:9:y:2017:i:10:p:1686-:d:112699 is not listed on IDEAS
    3. Vringer, Kees & Heijden, Eline Van Der & Soest, Daan Van & Vollebergh, Herman & Dietz, Frank, 2017. "Sustainable consumption dilemmas," Other publications TiSEM d683e2ed-c465-468e-b537-0, Tilburg University, School of Economics and Management.
    4. Kees Vringer & Eline van der Heijden & Daan van Soest & Herman Vollebergh & Frank Dietz, 2017. "Sustainable Consumption Dilemmas," Sustainability, MDPI, Open Access Journal, vol. 9(6), pages 1-21, June.

    More about this item

    Keywords

    animal welfare; consumers; dairy cattle; ethical consumption; market segmentation; milk; survey;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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