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Demand for farm animal welfare and producer implications: Results from a field experiment in Michigan |
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| Institution: | 1. Institute for Food and Resource Economics, Department of Agricultural and Food Market Research, University of Bonn, Nussallee 21, Bonn 53115, Germany;2. Institute of Vocational Education and Work Studies, Education for Sustainable Nutrition and Food Science, Technische Universität Berlin, Marchstr. 23, MAR 1-1, Berlin 10587, Germany;1. Department of Food and Resource Economics, Section for Consumption, Bioethics and Governance at the University of Copenhagen, Rolighedsvej 25C, 1958, Frederiksberg, Denmark;2. Danish Meat Research Institute, Technological Institute, Gregersensvej 9, 2630 Taastrup, Denmark;3. Department of Food and Resource Economics, Section for Consumption, Bioethics and Governance at the University of Copenhagen, Rolighedsvej 25C, 1958 Frederiksberg, Denmark |
| 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 |
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