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Do Food Quality Schemes and Net Price Premiums Go Together?

Author

Listed:
  • Sylvette Monier-Dilhan

    (US ODR - Observatoire des Programmes Communautaires de Développement Rural - INRA - Institut National de la Recherche Agronomique)

  • Thomas Poméon

    (US ODR - Observatoire des Programmes Communautaires de Développement Rural - INRA - Institut National de la Recherche Agronomique)

  • Michael Böhm

    (ECOZEPT [Freising])

  • Ruzica Brečić

    (University of Zagreb)

  • Peter Csillag

    (ECO-SENSUS Research and Communication Non-profit Ltd., 7100 Szekszárd, Hungary)

  • Michele Donati

    (UNIPR - Università degli studi di Parma = University of Parma)

  • Hugo Ferrer-Pérez

    (Center for Agro-Food Economics and Development - UPC - Universitat Politècnica de Catalunya = Université polytechnique de Catalogne [Barcelona] - IRTA - Institute for Agrifood Research and Technology)

  • Lisa Gauvrit

    (Ecozept - Partenaires INRAE)

  • José M. Gil

    (CREDA - CREDA - Centre de Recerca en Economia i Desenvolupament Agroalimentaris)

  • Việt Hoàng

    (School of Economics [University of Economics Ho Chi Minh City] - UEH - University of Economics Ho Chi Minh City)

  • Apichaya Lilavanichakul

    (Agro-Industrial Technology, Faculty of Agro-Industry - KU - Kasetsart University [Bangkok, Thailand])

  • Edward Majewski

    (Institute of Economics and Finance [Warsaw University of Life Sciences] - SGGW - Warsaw University of Life Sciences)

  • Agata Malak-Rawlikowska

    (Department of Economics and Organisation of Entreprises, Institute of Economics and Finance - SGGW - Warsaw University of Life Sciences)

  • Konstadinos Mattas

    (Department of Agricultural Economics, School of Agriculture - Aristotle University of Thessaloniki)

  • Orachos Napasintuwong

    (Department of Agricultural and Resource Economics, Faculty of Economics - KU - Kasetsart University [Bangkok, Thailand])

  • an Quỳnh Nguyễn

    (School of Economics [University of Economics Ho Chi Minh City] - UEH - University of Economics Ho Chi Minh City)

  • Kallirroi Nikolaou

    (Aristotle University of Thessaloniki)

  • Ioannis Papadopoulos

    (Aristotle University of Thessaloniki)

  • Stefano Pascucci

    (University of Exeter)

  • Jack Peerlings

    (WUR - Wageningen University and Research Centre)

  • Bojan Ristic

    (Faculty of Economics - University of Belgrade [Belgrade])

  • Kamilla Steinnes

    (SIFO - National Institute for Consumer Research - National Institute for ConsumerResearch)

  • Zaklina Stojanovic

    (University of Belgrade)

  • Marina Tomić Maksan

    (University of Zagreb)

  • Áron Török

    (Department of Agricultural Economics - Corvinus University of Budapest)

  • Mario Veneziani

    (UNIPR - Università degli studi di Parma = University of Parma)

  • Gunnar Vittersø

    (SIFO - National Institute for Consumer Research - National Institute for ConsumerResearch)

  • Valentin Bellassen

    (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This article addresses the issue of the profitability of Food Quality Scheme (FQS) products as compared to reference products, which are defined as analogous products without quality label. We approach this question by taking into account the level of the value chain (upstream, processing, and downstream), the sector (vegetal, animal, seafood) and the type of FQS (PGI, PDO, Organic). We collected original data for several products produced in selected European countries, as well as in Thailand and Vietnam. Comparisons depending on value chain level, sector and FQS are possible by using two comparable indicators: price premium and net price premium (including cost differential). The following principal conclusions were reached: 1) Price is higher for FQS products than for the reference products, regardless of the production level, the type of FQS or the sector; 2) Price premiums generated by FQS do not differ along the value chain, nor between sectors (vegetal, animal or seafood/fish); 3) Price premium for organic products is significantly higher than for PGI products, and this conclusion holds at upstream and processing levels, taking into account the costs directly related to production; 4) All organic products and almost all PDO and PGI products analysed benefit from a positive quality rent; 5) At upstream level and processing level, the relative weight of intermediate consumption in the cost structure is lower for organic products than for reference products.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Sylvette Monier-Dilhan & Thomas Poméon & Michael Böhm & Ruzica Brečić & Peter Csillag & Michele Donati & Hugo Ferrer-Pérez & Lisa Gauvrit & José M. Gil & Việt Hoàng & Apichaya Lilavanichakul & Edward , 2020. "Do Food Quality Schemes and Net Price Premiums Go Together?," Post-Print hal-03102266, HAL.
    • Handle: RePEc:hal:journl:hal-03102266
    DOI: 10.1515/jafio-2019-0044
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-03102266
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    Cited by:

    1. Bellassen, Valentin & Drut, Marion & Hilal, Mohamed & Bodini, Antonio & Donati, Michele & de Labarre, Matthieu Duboys & Filipović, Jelena & Gauvrit, Lisa & Gil, José M. & Hoang, Viet & Malak-Rawlikows, 2022. "The economic, environmental and social performance of European certified food," Ecological Economics, Elsevier, vol. 191(C).
    2. Viet Hoang & Vinh Nguyen, 2023. "Determinants of small farmers' participation in contract farming in developing countries: A study in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 836-853, July.

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    More about this item

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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