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

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  • Schreiner, Julia A.

Abstract

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.

Suggested Citation

  • Schreiner, Julia A., 2014. "Farmers’ Valuation of Incentives to Produce GMO-free Milk: A Discrete Choice Experiment," 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 199373, International European Forum on System Dynamics and Innovation in Food Networks.
    • Handle: RePEc:ags:iefi14:199373
    DOI: 10.22004/ag.econ.199373
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    References listed on IDEAS

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    1. Dolgopolova, Irina & Roosen, Jutta, 2018. "Competitive niche in milk pricing: Analyzing price dynamics of GMO-free, organic, and conventional milk in Germany during 2009–2010," Food Policy, Elsevier, vol. 78(C), pages 51-57.
    2. Chinedu, Obi & Sanou, Edouard & Tur-Cardona, Juan & Bartolini, Fabio & Gheysen, Godelieve & Speelman, Stijn, 2018. "Farmers’ valuation of transgenic biofortified sorghum for nutritional improvement in Burkina Faso: A latent class approach," Food Policy, Elsevier, vol. 79(C), pages 132-140.
    3. Cardona, Tur J. & Speelman, S. & Sanou, E., 2018. "Farmers attitudes towards GMO crops: comparison of attitudes towards first and second generation crops in Burkina Faso," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276968, International Association of Agricultural Economists.

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