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Demand for milk labels in Germany: organic milk, conventional brands, and retail labels

  • Astrid Jonas

    (Abbott GmbH & Co. KG, Ludwigshafen, Germany)

  • Jutta Roosen

    (Technische Universität München, Alte Akademie 16, 85350 Freising-Weihenstephan, Germany)

German milk brands have come under significant price pressure due to the introduction of retail labels at the lower price end and of organic milk as a premium product. This analysis provides elasticity estimates by milk types and analyzes sociodemographic determinants of demand. A censored system of German household demand for organic and conventional milk, further separated into retail-label and brand milk, is estimated using a two-step procedure on data from the 2000-2003 German GfK ConsumerScan Houshold Survey. Own-price elasticities of conventional milk are around unity, but the demand for organic milk is very price-elastic. Results suggest that the price of organic milk should be considered as an important marketing instrument. [JEL-Code: D12, Q11]. © 2008 Wiley Periodicals, Inc.

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Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 24 (2008)
Issue (Month): 2 ()
Pages: 192-206

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Handle: RePEc:wly:agribz:v:24:y:2008:i:2:p:192-206
Contact details of provider: Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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