Demand for farm animal welfare and producer implications: Results from a field experiment in Michigan

Research output: Contribution to journalArticle

Abstract

This study utilizes a Becker-DeGroot-Marschak (BDM) mechanism to assess Michigan consumer demand for animal welfare practices. Results are examined in the context of changing farm production costs and producer marketing margins. We find that while consumers are willing to pay significant premiums for animal welfare standards, failing to account for the costs associated with producing the entire animal under the new system could lead to suboptimal policy that negatively affects producer welfare. Our results suggest that consumer premiums for animal welfare are product specific and that WTP estimates should not be generalized to the entire animal. We discuss policy implications of our findings and highlight the importance of considering producer costs when evaluating consumer demand for farm animal welfare practices.

LanguageEnglish (US)
Pages74-81
Number of pages8
JournalFood Policy
Volume74
DOIs
StatePublished - Jan 1 2018

Profile

animal welfare
Animal Welfare
Domestic Animals
farmed animal species
producer
farm
animal
welfare
consumer demand
demand
experiment
Costs and Cost Analysis
premium
production cost
Marketing
cost
production costs
marketing
animals
costs

Keywords

  • Animal welfare
  • BDM mechanism
  • Consumer demand
  • Gestation crate/stall
  • Laying hen cage
  • Mandatory labeling
  • Producers

ASJC Scopus subject areas

  • Food Science
  • Development
  • Sociology and Political Science
  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

Cite this

@article{94e0eb4ade7f4606997c8c0d2b828b2f,
title = "Demand for farm animal welfare and producer implications: Results from a field experiment in Michigan",
abstract = "This study utilizes a Becker-DeGroot-Marschak (BDM) mechanism to assess Michigan consumer demand for animal welfare practices. Results are examined in the context of changing farm production costs and producer marketing margins. We find that while consumers are willing to pay significant premiums for animal welfare standards, failing to account for the costs associated with producing the entire animal under the new system could lead to suboptimal policy that negatively affects producer welfare. Our results suggest that consumer premiums for animal welfare are product specific and that WTP estimates should not be generalized to the entire animal. We discuss policy implications of our findings and highlight the importance of considering producer costs when evaluating consumer demand for farm animal welfare practices.",
keywords = "Animal welfare, BDM mechanism, Consumer demand, Gestation crate/stall, Laying hen cage, Mandatory labeling, Producers",
author = "Ortega, {David L.} and Wolf, {Christopher A.}",
year = "2018",
month = "1",
day = "1",
doi = "10.1016/j.foodpol.2017.11.006",
language = "English (US)",
volume = "74",
pages = "74--81",
journal = "Food Policy",
issn = "0306-9192",
publisher = "Elsevier BV",

}

TY - JOUR

T1 - Demand for farm animal welfare and producer implications

T2 - Food Policy

AU - Ortega,David L.

AU - Wolf,Christopher A.

PY - 2018/1/1

Y1 - 2018/1/1

N2 - This study utilizes a Becker-DeGroot-Marschak (BDM) mechanism to assess Michigan consumer demand for animal welfare practices. Results are examined in the context of changing farm production costs and producer marketing margins. We find that while consumers are willing to pay significant premiums for animal welfare standards, failing to account for the costs associated with producing the entire animal under the new system could lead to suboptimal policy that negatively affects producer welfare. Our results suggest that consumer premiums for animal welfare are product specific and that WTP estimates should not be generalized to the entire animal. We discuss policy implications of our findings and highlight the importance of considering producer costs when evaluating consumer demand for farm animal welfare practices.

AB - This study utilizes a Becker-DeGroot-Marschak (BDM) mechanism to assess Michigan consumer demand for animal welfare practices. Results are examined in the context of changing farm production costs and producer marketing margins. We find that while consumers are willing to pay significant premiums for animal welfare standards, failing to account for the costs associated with producing the entire animal under the new system could lead to suboptimal policy that negatively affects producer welfare. Our results suggest that consumer premiums for animal welfare are product specific and that WTP estimates should not be generalized to the entire animal. We discuss policy implications of our findings and highlight the importance of considering producer costs when evaluating consumer demand for farm animal welfare practices.

KW - Animal welfare

KW - BDM mechanism

KW - Consumer demand

KW - Gestation crate/stall

KW - Laying hen cage

KW - Mandatory labeling

KW - Producers

UR - http://www.scopus.com/inward/record.url?scp=85035346705&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85035346705&partnerID=8YFLogxK

U2 - 10.1016/j.foodpol.2017.11.006

DO - 10.1016/j.foodpol.2017.11.006

M3 - Article

VL - 74

SP - 74

EP - 81

JO - Food Policy

JF - Food Policy

SN - 0306-9192

ER -