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Consumer Preferences for Country‐of‐Origin Labeling in Protected Markets: Evidence from the Canadian Dairy Market
Author(s) -
Norris Amanda,
Cranfield John
Publication year - 2019
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppz017
Subject(s) - traceability , business , valuation (finance) , product (mathematics) , dairy industry , country of origin , commerce , marketing , economics , food science , accounting , statistics , chemistry , geometry , mathematics
Recent trade agreements will expand Canada's market access commitments for dairy products. We explore whether Canadian consumers will respond to the increased presence of imported dairy products using a discrete choice experiment that accounts for price, country‐of‐origin (COO), production method, brand, and traceability. We use four processed dairy products to illustrate potential trade‐offs: Gouda and cheddar cheese, ice cream, and yogurt. There are statistically significant discounts associated with COO effects. These discounts vary with the dairy product and are large compared to consumer valuation of other included attributes. We find large premiums for traceability programs, suggesting that the absence of assurances related to traceability may mute actual market penetration arising from increased access to the Canadian dairy market.