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

Author

Listed:
  • Astrid Jonas

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

  • Jutta Roosen

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

Abstract

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.

Suggested Citation

  • Astrid Jonas & Jutta Roosen, 2008. "Demand for milk labels in Germany: organic milk, conventional brands, and retail labels," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 192-206.
  • Handle: RePEc:wly:agribz:v:24:y:2008:i:2:p:192-206
    DOI: 10.1002/agr.20155
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    References listed on IDEAS

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    Cited by:

    1. Abdulfatah Sheikhbihi Adam & Sinne Smed, 2012. "The effects of different types of taxes on soft-drink consumption," IFRO Working Paper 2012/9, University of Copenhagen, Department of Food and Resource Economics, revised Nov 2012.
    2. Douadia Bougherara & Carole Ropars-Collet & Jude Saint-Gilles, 2018. "Impact of private labels and information campaigns on organic and fair trade food demand," CEE-M Working Papers 18-09, CEE-M, Universitiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    3. Schroeck, Rebecca, 2011. "Wie sensibel reagieren deutsche Verbraucher auf Preisänderungen bei Bio-Eiern? Eine Nachfrageanalyse mit Haushaltspanel-Daten," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114492, German Association of Agricultural Economists (GEWISOLA).
    4. Geir Gustavsen & Kyrre Rickertsen, 2014. "Consumer cohorts and purchases of nonalcoholic beverages," Empirical Economics, Springer, vol. 46(2), pages 427-449, March.
    5. Bilgic, Abdulbaki & Yen, Steven T., 2013. "Household food demand in Turkey: A two-step demand system approach," Food Policy, Elsevier, vol. 43(C), pages 267-277.
    6. 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.
    7. 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.
    8. repec:bla:jconsa:v:51:y:2017:i:1:p:211-251 is not listed on IDEAS
    9. Schrock, Rebecca, 2010. "Determinants Of The Demand For Organic And Conventional Fresh Milk In Germany– An Econometric Analysis," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116387, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
    10. Bonnet, Céline & Corre, Tifenn & Réquillart, Vincent, 2015. "Price Transmission in Food Chains: The Case of the Dairy Industry," TSE Working Papers 15-563, Toulouse School of Economics (TSE).
    11. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Differentiation in demand with different food retail formats," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182777, European Association of Agricultural Economists.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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