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Consumer Preferences for Country‐of‐Origin Labeling in Protected Markets: Evidence from the Canadian Dairy Market

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  • Amanda Norris
  • John Cranfield

Abstract

Recent trade agreements will expand Canada's market access commitments for dairy products. We explore whether Canadian consumers will respond to the increased presence of imported dairy products using a discrete choice experiment that accounts for price, country‐of‐origin (COO), production method, brand, and traceability. We use four processed dairy products to illustrate potential trade‐offs: Gouda and cheddar cheese, ice cream, and yogurt. There are statistically significant discounts associated with COO effects. These discounts vary with the dairy product and are large compared to consumer valuation of other included attributes. We find large premiums for traceability programs, suggesting that the absence of assurances related to traceability may mute actual market penetration arising from increased access to the Canadian dairy market.

Suggested Citation

  • Amanda Norris & John Cranfield, 2019. "Consumer Preferences for Country‐of‐Origin Labeling in Protected Markets: Evidence from the Canadian Dairy Market," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 391-403, September.
    • Handle: RePEc:wly:apecpp:v:41:y:2019:i:3:p:391-403
    DOI: 10.1093/aepp/ppz017
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    Cited by:

    1. Thøgersen, John, 2023. "How does origin labelling on food packaging influence consumer product evaluation and choices? A systematic literature review," Food Policy, Elsevier, vol. 119(C).
    2. Kassas, Bachir & Cao, Xiang & Gao, Zhifeng & House, Lisa A. & Guan, Zhengfei, 2023. "Consumer preferences for country of origin labeling: Bridging the gap between research estimates and real-world behavior," Journal of choice modelling, Elsevier, vol. 48(C).
    3. Kelvin Balcombe & Dylan Bradley & Iain Fraser, 2021. "Do Consumers Really Care? An Economic Analysis of Consumer Attitudes Towards Food Produced Using Prohibited Production Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 452-469, June.
    4. Kelvin Balcombe & Dylan Bradley & Iain Fraser, 2020. "The Economic Analysis of Consumer Attitudes Towards Food Produced Using Prohibited Production Methods: Do Consumers Really Care?," Studies in Economics 2004, School of Economics, University of Kent.
    5. Yuko Akune & Nobuhiro Hosoe, 2021. "Microdata analysis of Japanese farmers’ productivity: Estimating farm heterogeneity and elasticity of substitution among varieties," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 633-644, July.

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