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Testing local bias in food consumption: The case of fluid milk

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  • Binod Khanal
  • Rigoberto A. Lopez
  • Azzeddine Azzam

Abstract

This article provides the first set of estimates of the degree of local bias in food consumption, by adapting the international trade notion of home bias, or consumers' tendency to favor domestic over imported goods, to local bias, which describes the tendency of consumers to favor local over nonlocal food. Using state boundaries to define local and household data on cow milk purchases from 2007 until 2016 in the New England region, estimates from the Armington model confirm a bias for fluid milk brands identified as local. [EconLit classifications: D12, L6, Q18].

Suggested Citation

  • Binod Khanal & Rigoberto A. Lopez & Azzeddine Azzam, 2020. "Testing local bias in food consumption: The case of fluid milk," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 339-344, April.
    • Handle: RePEc:wly:agribz:v:36:y:2020:i:2:p:339-344
    DOI: 10.1002/agr.21632
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    References listed on IDEAS

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    1. Jason Winfree & Philip Watson, 2017. "The Welfare Economics of “Buy Local”," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 971-987.
    2. W. H. Furtan & Blain M. van Melle, 2004. "Canada's Agricultural Trade in North America: Do National Borders Matter?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(3), pages 317-331.
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    6. Onozaka, Yuko & Nurse, Gretchen & Thilmany, Dawn D., 2010. "Local Food Consumers: How Motivations and Perceptions Translate to Buying Behavior," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 25(1), pages 1-6.
    7. Binod Khanal & Rigoberto A. Lopez & Azzeddine Azzam, 2020. "Testing local bias in food consumption: The case of fluid milk," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 339-344, April.
    8. Olper, Alessandro & Raimondi, Valentina, 2008. "Agricultural market integration in the OECD: A gravity-border effect approach," Food Policy, Elsevier, vol. 33(2), pages 165-175, April.
    9. Khanal, Binod & Lopez, Rigoberto A. & Azzam, Azzeddine M., 2018. "Local Bias in Fluid Milk Consumption," 2018 Annual Meeting, August 5-7, Washington, D.C. 274142, Agricultural and Applied Economics Association.
    10. Stephen Toler & Brian C. Briggeman & Jayson L. Lusk & Damian C. Adams, 2009. "Fairness, Farmers Markets, and Local Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1272-1278.
    11. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
    12. Lopez, Rigoberto A. & Pagoulatos, Emilio & Gonzalez, Maria A., 2006. "Home bias and U.S. imports of processed food products," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 363-373, December.
    13. Bond, Jennifer Keeling & Thilmany, Dawn & Bond, Craig, 2009. "What Influences Consumer Choice of Fresh Produce Purchase Location?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(1), pages 61-74, April.
    14. Hand, Michael S. & Martinez, Stephen W., 2010. "Just What Does Local Mean?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 25(1), pages 1-4.
    15. W. H. Furtan & Blain M. van Melle, 2004. "Canada's Agricultural Trade in North America: Do National Borders Matter?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(3), pages 317-331.
    16. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, September.
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    1. Stewart, Hayden & Kuchler, Fred & Dong, Diansheng & Cessna, Jerry, 2021. "Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18," Economic Research Report 327183, United States Department of Agriculture, Economic Research Service.
    2. Yizao Liu & Xuan Chen & Adam N. Rabinowitz & Benjamin Campbell, 2020. "Demand, challenges, and marketing strategies in the retail promotion of local brand milk," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 655-668, September.
    3. Hayden Stewart & Fred Kuchler & William Hahn, 2021. "Is competition among soft drinks, juices, and other major beverage categories responsible for reducing Americans' milk consumption?," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 731-748, October.
    4. Xiao Dong & H. Allen Klaiber & Zoë Plakias, 2023. "I scream, you scream, we all scream for local ice cream: Consumer preferences for locally processed foods," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 51-64, January.
    5. Lopez, Rigoberto A. & Khanal, Binod, 2020. "Got Local? Demand for Milk with Food Miles," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304354, Agricultural and Applied Economics Association.
    6. Baranauskaite Lina & Jurevicienė Daiva, 2021. "Identification of Lithuanian International Trade Risk in Beverages," Economics and Culture, Sciendo, vol. 18(1), pages 100-112, June.
    7. Zaringa, Caitlin & Jensen, Kimberly & Rihn, Alicia & Morgan, Mark & Eckelkamp, Elizabeth, 2023. "A Profile of Tennessee Farmstead Milk Consumers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 54(03), November.
    8. Zaring, Caitlin & Jensen, Kimberly & Rihn, Alicia & Morgan, Mark & Eckelkamp, Elizabeth, 2023. "A Profile of Tennessee Farmstead Milk Consumers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 54(3), November.
    9. Binod Khanal & Rigoberto A. Lopez & Azzeddine Azzam, 2020. "Testing local bias in food consumption: The case of fluid milk," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 339-344, April.
    10. Janina Knuck & Sebastian Hess, 2023. "Who buys regional fresh milk brands? An analysis of German household data," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 473-493, March.
    11. Stewart, Hayden & Kuchler, Fred & Dong, Diansheng & Cessna, Jerry, 2021. "Examining the Decline in U.S. Per Capita Consumption of Fluid Cow’s Milk, 2003–18," USDA Miscellaneous 316500, United States Department of Agriculture.

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