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Farmers’ Valuation of Incentives to Produce GMO-free Milk: A Discrete Choice Experiment

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  • Schreiner, Julia A.
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    This paper investigates farmers’ willingness to adopt a Genetically Modified Organisms (GMO)-free milk production scheme introduced by the dairy. Incentives like a price premium, advice, quality control and feed procurement are set to encourage the conversion. The analysis is based upon Discrete Choice Experiments with 151 dairy farmers in Germany. Alternative-specific conditional logit estimation reveals the marginal effects of incentives and the amount of compensation. The results indicate that attributes like the price premium, takeover of feed procurement and an external audit affect the likelihood of adoption. Farmer, farm characteristics and attitudes concerning GMO as well as expectations on feed prices were found to be significant determinants of adoption. Moreover the findings demonstrate variation in the values of attributes across regions.

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    File URL: http://purl.umn.edu/199373
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    Paper provided by International European Forum on Innovation and System Dynamics in Food Networks in its series 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria with number 199373.

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    Date of creation: Oct 2014
    Handle: RePEc:ags:iefi14:199373
    Contact details of provider: Web page: http://www.fooddynamics.org/

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