Market and Welfare Effects of Mandatory Country-of-Origin Labeling in the US Specialty Crops Sector
This study provides a new framework of analysis of the market and welfare effects of mandatory country of origin labeling (MCOOL) for fruits and vegetables that accounts for heterogeneous consumer preferences for domestic products, differences in producer agronomic characteristics, and retailer market power when buying and selling these products. The market and welfare effects of MCOOL are shown to be case-specific and dependent on the labeling costs at the farm and retail levels, the strength of consumer preference for domestic products, the market power of retailers, the marketing margin along the supply chain, and the relative costs of imported and domestic products. Simulation results for the US markets of apples and tomatoes indicate that for the regulation to increase total economic welfare in these markets, the consumer demand after MCOOL would need to increase by 2.6% to 7.0% for domestic apples and by 8.2% to 22.4% for domestic tomatoes, depending on the market power of retailers and the size of the labeling costs.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mabiso, Athur & Sterns, James A. & House, Lisa & Wysocki, Allen F., 2005. "Estimating Consumers' Willingness-To-Pay for Country-Of-Origin Labels in Fresh Apples and Tomatoes: A Double-Hurdle Probit Analysis of American Data Using Factor Scores," 2005 Annual meeting, July 24-27, Providence, RI 19418, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Schupp, Alvin R. & Gillespie, Jeffrey M., 2001. "Consumer Attitudes Toward Potential Country-Of-Origin Labeling Of Fresh Or Frozen Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(03), November.
- Lusk, Jayson L. & Anderson, John D., 2004. "Effects of Country-of-Origin Labeling on Meat Producers and Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(02), August.
- James Rude & Javed Iqbal & Derek Brewin, 2006. "This Little Piggy Went to Market with a Passport: The Impacts of U.S. Country of Origin Labeling on the Canadian Pork Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(3), pages 401-420, 09.
- Giannakas, Konstantinos & Fulton, Murray, 2002. "Consumption effects of genetic modification: what if consumers are right?," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(2), August.
- Golan, Elise H. & Kuchler, Fred & Mitchell, Lorraine, 2000. "Economics Of Food Labeling," Agricultural Economics Reports 34069, United States Department of Agriculture, Economic Research Service.
- Grier, Kevin & Kohl, David M., 2003. "Impacts Of U.S. Country Of Origin Labeling On U.S. Hog Producers," Final Reports 18146, George Morris Center.
- Brester, Gary W. & Marsh, John M. & Jimmerson, Jason, 2004. "Distributional Impacts of Country-of-Origin Labeling in the U.S. Meat Industry," Agricultural Marketing Policy Center Briefings 29189, Montana State University, Department of Agricultural Economics and Economics.
- Dimitri, Carolyn & Tegene, Abebayehu & Kaufman, Phillip R., 2003. "U.S. Fresh Produce Markets: Marketing Channels, Trade Practices, And Retail Pricing Behavior," Agricultural Economics Reports 33907, United States Department of Agriculture, Economic Research Service.
- Handy, Charles R. & Thompson, Gary D. & Glaser, Lewrene K., 2001. "Recent Changes In Marketing And Trade Practices In The U.S. Lettuce And Fresh-Cut Vegetable Industries," Agricultural Information Bulletins 33601, United States Department of Agriculture, Economic Research Service.
- Giannakas, Konstantinos & Fulton, Murray, 2002. "Consumption effects of genetic modification: what if consumers are right?," Agricultural Economics, Blackwell, vol. 27(2), pages 97-109, August.
- Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
- Murray Fulton & Konstantinos Giannakas, 2004. "Inserting GM Products into the Food Chain: The Market and Welfare Effects of Different Labeling and Regulatory Regimes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 42-60.
- Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
- Henneberry, Shida Rastegari & Armbruster, Walter J., 2003. "Emerging Roles For Food Labels: Inform, Protect, Persuade," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(03), November.
- Loureiro, Maria L. & Umberger, Wendy J., 2002. "Estimating Consumer Willingness-To-Pay For Country Of-Origin-Labels For Beef Products," 2002 Annual meeting, July 28-31, Long Beach, CA 19745, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Schmitz, Andrew & Moss, Charles B. & Schmitz, Troy G., 2005. "A Differential Examination of the Effect of Mandatory Country of Origin of Labeling on the Beef Sector," 2005 Annual meeting, July 24-27, Providence, RI 19158, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
When requesting a correction, please mention this item's handle: RePEc:ags:aaea08:6536. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.