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Milk by Any Other Name … Consumer Benefits from Labeled Milk

Author

Listed:
  • Tirtha Dhar
  • Jeremy D. Foltz

Abstract

This article uses revealed preferences of consumers to study the consumer benefits from rBST-free and organic labeled milk. The article specifies and estimates a quadratic AIDS demand system model for different milk types using U.S. supermarket scanner data. The introduction of rBST-free and organic milk is used to estimate consumer benefits that are decomposed into two components, competitive and variety effects. Results show significant consumer benefits from organic milk and to a lesser extent from rBST-free milk. Based on the findings, we explore implications for present U.S. labeling standards. Copyright 2005, Oxford University Press.

Suggested Citation

  • Tirtha Dhar & Jeremy D. Foltz, 2005. "Milk by Any Other Name … Consumer Benefits from Labeled Milk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 214-228.
  • Handle: RePEc:oup:ajagec:v:87:y:2005:i:1:p:214-228
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    File URL: http://hdl.handle.net/10.1111/j.0002-9092.2005.00713.x
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    Citations

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    Cited by:

    1. Sun, Shaoyan & An, Henry, 2013. "Reputation and Multiproduct-firm Behavior: Product Line and Price Rivalry Among Retailers," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151146, Agricultural and Applied Economics Association.
    2. Lacaze, María Victoria, 2009. "Las preferencias de los consumidores argentinos por alimentos diferenciados por atributos de calidad de procesos: el caso de la leche entera orgánica," Nülan. Deposited Documents 378, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Vasiliki Fourmouzi & Margarita Genius & Peter Midmore, 2012. "The Demand for Organic and Conventional Produce in London, UK: A System Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 677-693, September.
    4. Sara Scatasta & Justus Wesseler & Jill Hobbs, 2007. "Differentiating the consumer benefits from labeling of GM food products," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 237-242, September.
    5. Yuan, Yan & Capps, Oral, Jr. & Nayga, Rodolfo M., Jr., 2009. "Assessing the Demand for a Functional Food Product: Is There Cannibalization in the Orange Juice Category?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), October.
    6. Rickard, Bradley J. & Schmit, Todd M. & Gomez, Miguel I. & Lu, Hao, 2011. "Does the Name Matter? Developing Brands for Patented Fruit Varieties," Working Papers 126603, Cornell University, Department of Applied Economics and Management.
    7. repec:bla:jconsa:v:51:y:2017:i:1:p:211-251 is not listed on IDEAS
    8. Arabatzis, Garyfallos & Klonaris, Stathis, 2009. "An analysis of Greek wood and wood product imports: Evidence from the linear quadratic aids," Forest Policy and Economics, Elsevier, vol. 11(4), pages 266-270, July.
    9. Kristine M. Grimsrud & Robert P. Berrens & Ron C. Mittelhammer, 2006. "A Mixture Model of Consumers' Intended Purchase Decisions for Genetically Modified Foods," Economics Bulletin, AccessEcon, vol. 3(23), pages 1-11.
    10. Toshinobu Matsuda, 2006. "Linear approximations to the quadratic almost ideal demand system," Empirical Economics, Springer, vol. 31(3), pages 663-675, September.
    11. Bonnet, Céline & Bouamra-Mechemache, Zohra, 2014. "Organic label and profits sharing in the French fluid milk market," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182708, European Association of Agricultural Economists.
    12. repec:ags:jrapmc:122316 is not listed on IDEAS
    13. Li, Xianghong & Peterson, Hikaru Hanawa & Xia, Tian, 2012. "U.S. Consumer Demand for Organic Fluid Milk by Fat Content," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(1), March.
    14. Schroeck, Rebecca, 2011. "A Demand System Analysis of Organic and Conventional Fresh Milk in Germany Segmented by Consumer Groups," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115995, European Association of Agricultural Economists.
    15. Kolodinsky, Jane, 2008. "Affect or information? Labeling policy and consumer valuation of rBST free and organic characteristics of milk," Food Policy, Elsevier, vol. 33(6), pages 616-623, December.
    16. Ubilava, David & Foster, Kenneth A. & Lusk, Jayson L. & Nilsson, Tomas K.H., 2008. "Differences In U.S. Consumer Preferences For Certified Pork Chops When Facing Branded Vs. Non-Branded Choices," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Seidu, Ayuba & Seale, James, 2015. "Estimating Danish Consumers’ Preference for Organic Foods: Application of a Generalized Differential Demand System," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196809, Southern Agricultural Economics Association.
    18. Lusk, Jayson L. & Norwood, F. Bailey, 2009. "Some Economic Benefits and Costs of Vegetarianism," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(02), pages 109-124, October.
    19. Céline Bonnet & Zohra Bouamra-Mechemache, 2016. "Organic Label, Bargaining Power, and Profit-sharing in the French Fluid Milk Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(1), pages 113-133.
    20. Shunsuke Managi & Yasutaka Yamamoto & Hiroyuki Iwamoto & Kiyotaka Masuda, 2008. "Valuing the influence of underlying attitudes and the demand for organic milk in Japan," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 339-348, November.
    21. repec:eee:ecolec:v:146:y:2018:i:c:p:686-695 is not listed on IDEAS
    22. Nicolai V. Kuminoff & Ada Wossink, 2010. "Why Isn't More US Farmland Organic?," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 240-258.

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