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Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?

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  • Julie A. Caswell

    (Department of Resource Economics, University of Massachusetts Amherst)

  • Siny Joseph

    (Department of Resource Economics, University of Massachusetts Amherst)

Abstract

The impact of consumer demand for quality on the agricultural and food system is an increased emphasis on quality differentiation but not all in the direction of upgrading quality. The more elite market segments are thriving and reaching growing numbers of consumers but the basic price/quality markets remain strong. Most recent economic studies find that consumers are willing to pay for food safety and other quality attributes, and for information about them. The magnitude of the valuations varies by food product, attribute, country, and study design. This literature and a case study of genetically modified foods suggest that consumer demand has a strong effect on agricultural and food trade.

Suggested Citation

  • Julie A. Caswell & Siny Joseph, 2007. "Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?," Working Papers 2007-4, University of Massachusetts Amherst, Department of Resource Economics.
  • Handle: RePEc:dre:wpaper:2007-4
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    3. Lucio CECCHINI & Biancamaria TORQUATI & Massimo CHIORRI, 2018. "Sustainable agri-food products: A review of consumer preference studies through experimental economics," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(12), pages 554-565.
    4. Basan, Romiel John P., 2017. "Consumer Preference of Table Banana Quality by Income Groups in the Philippines: Hedonic Price Analysis," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 13(2), July.
    5. Vardges Hovhannisyan & Sachintha Mendis & Chris Bastian, 2019. "An econometric analysis of demand for food quantity and quality in urban China," Agricultural Economics, International Association of Agricultural Economists, vol. 50(1), pages 3-13, January.
    6. Andy W. Chen & Hao Chen, 2021. "Pricing of higher education: The case of top-ranked MBA programs," Economics and Business Letters, Oviedo University Press, vol. 10(3), pages 310-318.
    7. Tranter, R.B. & Bennett, R.M. & Costa, L. & Cowan, C. & Holt, G.C. & Jones, P.J. & Miele, M. & Sottomayor, M. & Vestergaard, J., 2009. "Consumers' willingness-to-pay for organic conversion-grade food: Evidence from five EU countries," Food Policy, Elsevier, vol. 34(3), pages 287-294, June.

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    More about this item

    Keywords

    food quality; food safety; consumer demand; willingness to pay; international trade;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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