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Product differentiation, quality, and milk price stability: The case of the Swiss cheese market

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  • Yanbing Wang
  • Simon Hug
  • Judith Irek
  • Robert Finger

Abstract

We investigate potential linkages between product and quality differentiation in the cheese markets and raw milk producer prices. We analyze the co‐movements of producer prices of milk delivered to cheese processing channels with different differentiation strategies, namely industrial, artisanal, and artisanal cheese with geographical indications (GI) in the Swiss dairy market. We find that overall, product and quality differentiation in cheese markets helps milk producers achieve higher and more stable prices. Additional GI protection does not guarantee further enhancement of producer prices. Rather, its effectiveness may depend largely on the strength of GI protection and the governance of producer organizations.

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  • Yanbing Wang & Simon Hug & Judith Irek & Robert Finger, 2025. "Product differentiation, quality, and milk price stability: The case of the Swiss cheese market," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 47(1), pages 416-435, March.
    • Handle: RePEc:wly:apecpp:v:47:y:2025:i:1:p:416-435
    DOI: 10.1002/aepp.13467
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