Reconnecting Australian consumers and producers: Identifying problems of distrust

A growing gap between the production and consumption of food has led to a decline in consumer trust in food, and a desire for increased regulation of food. The aim of this study was to investigate the nature of consumer trust in food production and regulation in the wake of shifts in food technology, globalisation and production. Semi-structured interviews (n = 47) were conducted in 2009 with participants living in rural and metropolitan South Australia. Rural participants were more trusting of food production because of their direct experience with producing food than their metropolitan counterparts. Consumers’ embeddedness in food production impacts their trust in food. Increasing local food production and consumption may increase consumer trust in food, and decrease consumer dependence on government regulation.     

Consumers’ valuation for food traceability in China: Does trust matter?

Food safety is a very important topic in China. We investigate Chinese consumers’ preferences and willingness to pay (WTP) for food traceability using a choice experiment. Given that consumers’ trust in the food system may affect their preferences and WTP, we also assess the interaction between consumers’ trust in government’s supervision of food safety and food labels and consumers’ preferences for traceable food products. Using data collected from a choice experiment on Fuji apples in a face-to-face survey in six Chinese cities, the results show that (i) consumers are willing to pay for traceable food but their valuations can differ upon the degree of their trust in government’s supervision of food safety and food labels; (ii) consumers are willing to pay for traceability with strong evidence of preference heterogeneity; (iii) government is not the most trusted safety inspection and certificate authority as found in prior studies using animal food products in China.     

The impact of expiration dates labels on hedonic markets for perishable products

This study draws inferences from a pre-registered field experiment to investigate how expiration dates impact consumer preferences for food products with different ages. Based on a power analysis, we recruited 373 adult participants for the experiment. The results demonstrate that expiration dates largely influenced the perceived freshness of a food product as they seem to indicate a quality standard. When no explicit expiration date was present, consumers believed that the product’s quality decreased monotonically as time passed. However, in the presence of an expiration-date label, consumers initially perceived the product as more acceptable, but then that perception changed quickly after the date of expiration to levels more consistent with what they would perceive if the expiration date was not present. These results support policies that label expiration dates for consumers, as these labels benefit consumers, producers, and the public, especially for times prior to the expiration date. These results also suggest that it is important to craft policy and market strategies for products that are past the expiration date, but are still safe to consume. Policies that set the expiration dates to the time where the taste quality begins to worsen would likely benefit both consumers and producers, while policies that set the expiration dates to the time where the food is no longer safe probably improve the public outcomes as it minimizes food waste.     

Standing out in the crowd: The effect of information clutter on consumer attention for front-of-pack nutrition labels

Whether and how information density on front-of-pack design affects consumers’ attention for nutrition labels is explored. The main manipulation concerned the number and type of nutrition labels (directive-, semi-, and non-directive), chromaticity (monochrome vs. traffic light color-coded scheme); number and type of additional design elements; and the distance between the label and additional design elements. Attention was measured by performance in visual search task. Performance was slower with increasing number of additional design elements, and when the label appeared in a dense rather than non-dense area. These effects were modulated by label type and chromaticity. The results show that information density is a key factor for consumer attention to (nutrition) information. Implications for policy makers and food producers who want to optimize package design layout and thus help consumers easily to find nutrition information displayed front of the pack are discussed.     

Perspectives of gatekeepers in the Kenyan food industry towards genetically modified food

Attitudes and perceptions of stakeholders are crucial in the acceptability of GM foods. Past research focussed on consumers, but paid little attention to the food industry and its gatekeepers, especially in Africa. Therefore, a survey was conducted covering 39 respondents from the milling industry and supermarkets, the main processors and distributors of maize products, in seven urban centres of Kenya. Respondents, mostly from senior management, were well educated and had a good knowledge of biotechnology. Their major sources of information were the media for the supermarkets, and brochures and the food industry for the milling companies. Respondents generally appreciated the benefits of biotechnology, but had concerns about the environment, although few people considered GM food harmful to human or animal health. Most respondents found traceability of GM products important, but would prefer not to label them because of the costs and possible negative consumer reactions. Respondents were largely non-committal on the use of GM products in their companies, preferring to decide on a case-by-case basis. The few negative responses, mostly from the milling industry, were affected by high risk and low benefit perceptions. Most respondents do not like the idea of labelling GM food. Better communication between research and the food industry is now needed, and more research on the labelling of GM products.     

European consumer preferences for beef with nutrition and health claims: A multi-country investigation using discrete choice experiments

The European Union (EU) nutrition labelling policy aims to facilitate consumers’ food choice, stimulate innovation and facilitate the circulation of foods bearing claims across countries. However, the beef industry has not fully taken advantage of utilizing nutrition and health claims based on the EU nutrition labelling policy to differentiate beef products in the market. This study investigates consumer preferences for nutrition and health claims on lean beef steak. Two choice experiments were conducted among 2400 beef consumers in four EU countries (Belgium, France, the Netherlands, United and United Kingdom). Multinomial logit and error component models were estimated. Our results generally suggest that consumer valuation of nutritional and health claims varies across countries. In Belgium, the Netherlands and France, nutrition and health claims on saturated fat yielded higher utilities than claims on protein and/or iron, while the opposite was found among consumers in the UK. The results imply that marketing opportunities related to nutrition and health claims on beef are promising, but that different nutritional marketing strategies are necessary within different countries.     

Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand

Food safety systems in emerging markets are currently facing a transformation period, becoming more stringent because of an increasing demand for safer food. Consequently, policy makers need to find strategies to increase food safety while giving the industry time to improve their performance. In Thailand, policy makers have adopted the strategy of upgrading food safety standards gradually. Government and private food safety brands and labels were introduced onto the market but little is known whether Thai consumers have preferences for them or not. This study is aimed at evaluating Thai consumers’ preferences for food safety labels and brands on fresh produce, using a surveyed based on discrete-choice experiments. A sample of 350 Thai consumers was surveyed in Bangkok and Nonthaburi in 2013. Quota sampling according to the shopping outlets and convenience sampling methods were adopted. Two hundred respondents were recruited at fresh-food markets and 150 respondents were recruited at supermarkets. We found that consumers are willing-to-pay more for both government led food safety label and private brands, but that there is high heterogeneity in their preferences. The high degree of social desirability for food safety labels confirms that food safety labelling policy should be supported. However, the provision of information and credibility are vital in order to mitigate the risk of consumer deception by self-claimed labels.     

The impact of mandatory trans fat labeling on product mix and consumer choice: A longitudinal analysis of the U.S. Market for margarine and spreads

The impact of changes in food labeling policy on food consumption depends on how market participants—both firms and consumers—react to the changes across all products in the market. We investigate how both responded to the U.S. Food and Drug Administration’s 2006 rule mandating that the quantity of trans fat in food products be separately labeled on the mandatory Nutrition Facts Panel across an entire differentiated product category. Using a longitudinal data set tracking both product offerings and consumer purchases in the market for margarine and spreads for over a decade, we analyze how product mix and consumer purchase behaviors were influenced by the new regulatory requirement. We find that the number of products bearing voluntary “trans fat free” labels increased after the labeling regulation was implemented. However, a large number of the newly introduced products exited the market within five years. As a result, the FDA’s 2006 rule had a stronger short-run than long-run effect on product offerings. Even after the introduction of additional “trans fat free” labeled products, such products remained only a small percentage of margarine and spreads product offerings, increasing from a pre-regulation level of 2.3% of the market to a peak of 6.5% in 2007 before dropping to 3.1% by 2011. In addition to firm response, we examine demand-side reactions to the 2006 rule and find that consumers significantly increased their expenditures on “trans fat free” labeled products soon after the labeling changes were implemented, increasing from about 1.2% of the market in 2001 to a peak of 5.9% in 2007, before returning to 1.8% in 2011. We further explore variations in responses across different demographic characteristics. Although long-run effects are small, the market for “trans fat free” labeled margarine and spreads settled into a new equilibrium with a somewhat higher level of products in the market than prior to the 2006 rule taking effect and a somewhat higher share of expenditures in the category. Overall, our category-wide analysis of both firm and consumer behavior indicates that the effects of the labeling policy change were smaller in the longer run in this market than would be indicated by an analysis of only new product introductions in response to the policy change.     

A preliminary comparison of the retail level effects of genetically modified food labelling policies in Canada and France

Most developed countries have adopted labelling policies for genetically modified (GM) food. In April 2004, Canada implemented a voluntary labelling policy for GM and non-GM food, while France adopted the European Union’s new extended mandatory labelling of GM food. I present the result of a qualitative survey of GM and non-GM food labels in supermarkets in Canada and France, five months after the introduction of the new policies. I find that there are almost no GM labelled products in France and non-GM labelled products in Canada. Each policy tends to crowd out the targeted label attribute. However, Canadian consumers can choose between GM and non-GM organic products, whereas there are only non-GM products in French supermarkets. Recent political developments in Quebec suggest that the labelling landscape may change in Canada, either with an increase in the number of non-GM products at the retail level or a transition towards a mandatory labelling policy like in France.     

An industry viewpoint on the role of farm assurance in delivering food safety to the consumer: The case of the dairy sector of England and Wales

Food safety, alongside food quality, remains a primary concern of both consumers and those along the whole food supply chain, leading to regulation by government alongside private third party certification. Much has been written about the value of these systems primarily from the perception of the consumer. This paper reports on a study that examined industry perceptions on the regulatory and assurance systems within the dairy sector of England and Wales. It found that the primary producer found value in both systems, although from a food hygiene focus regulation was seen to be more rigorous. Other stakeholders along the dairy food supply chain saw the assurance scheme as more rigorous. All stakeholders recognised the need to reduce duplication in delivering food safety through combining key elements of both systems with the added potential for better communication of both food safety and quality to the final consumer.     

Modeling heterogeneity in consumer preferences for select food safety attributes in China

Food safety issues often arise from asymmetric information between consumers and suppliers with regards to product-specific attributes. Severe food safety scandals were observed recently in China. These events not only caused direct economic and life losses, but also created distrust in the Chinese food system domestically, as well as internationally. While much attention has focused on the problems plaguing the Chinese government’s food inspection system, little research has been dedicated to analyzing Chinese consumers’ concerns surrounding food safety. In this paper, we measure consumer preferences for select food safety attributes in pork and take food safety risk perceptions into account. Several choice experiment models, including latent class and random parameters logit, are constructed to capture heterogeneity in consumer preferences. Our results suggest that Chinese consumers have the highest willingness-to-pay for a government certification program, followed by third-party certification, a traceability system, and a product-specific information label. The results of this study call for the direct involvement of the Chinese government in the food safety system. A stricter monitoring system will not only improve consumer well-being in the short-run, but also restore consumers’ trust leading to a social welfare increase in the long run.     

Consumer knowledge and use of information about fish and aquaculture

This paper explores consumers’ knowledge about fish and aquaculture and assesses the use and importance of different information cues about fish. Cross-sectional data were collected in 2008 through a consumer survey (n = 3213) in the Czech Republic, Germany, Greece, Italy, Portugal, Romania, Sweden and the UK. Consumers’ knowledge about fish generally, and about aquaculture in particular, was relatively low and differed significantly between countries. Consumers from all countries reported an indication of quality and/or food safety as an information cue when buying fish. The information sources most frequently used by Europeans were labelling and sellers in retail or supermarkets. The Internet was identified by consumers in all of the countries as one of the most important sources of information about sea and freshwater fish products. Policy makers and food marketers are encouraged to develop a simple and easily recognisable mark (relating to quality, food safety and nutrition) to assist consumer decision-making. Information campaigns focusing on issues such as the nutritional benefits of eating fish are also recommended.     

Does nutrition information on food products lead to healthier food choices?

This paper examines the link between nutrition label use and consumers’ healthier food choices. Label use is considered for the two main types of labels currently found on food products; nutrition facts panels and nutrition/health claims. This link is tested using a three-equation multivariate probit model. Data were obtained from an ad hoc survey conducted in two medium-sized Spanish cities. The results indicate that the use of nutrition information by consumers, whether this involves the fact panel or the claim labels, does influence consumer choice of healthier food products to the same extent, although different types of consumers use the various types of labels considered.     

Are consumers concerned about palm oil? Evidence from a lab experiment

A lab experiment evaluates the consumers’ willingness to pay (WTP) for food products made with and without palm oil. Palm oil production induces environmental damages, and its consumption presents a health risk. However, the production of alternative oils raises land use issues. In the experiment, successive messages emphasizing the characteristics of palm oil and palm oil-free products are delivered to participants. Information has a significant influence on WTP when it underlines the negative impact of the related product. This effect is stronger for the palm oil product than for the palm oil-free product. The experiment also compares the welfare effects of two regulatory instruments, namely a consumer information campaign versus a per-unit tax. Because of the respective attributes of both palm oil and palm oil-free products, the information campaign improves welfare with a much larger impact than the tax.     

Why sustainable and ‘nutritionally correct’ food is not on the agenda: Western Sydney,the moral arts of everyday life and public policy

Within a context of delivering food security into the future, dietary guidelines are being reframed, corporations are replacing unsustainable products, and consumers are being encouraged to become ecological citizens. While there is a growing literature on the food practices of ‘alternative’ consumers, ‘mainstream’ consumers are less well understood. This paper describes qualitative research undertaken in a socio-economically disadvantaged area of Sydney, Australia, which aimed to uncover consumer views towards sustainable and healthy diets. Most participants indicated a discrepancy between their desired and actual behaviours: while they want to support Australian, or local, food producers they gravitate towards cheap and tasty food from ‘anywhere’; and while they associate nutritious food with fresh food, they will buy processed foods which can be less expensive, appeal to children and are prone to less waste. Reflecting mainstream Australian political culture, participants were compromising household food budgets in order to pursue a socially acceptable standard of living (including decent housing, car-reliance). They were also incorporating the pleasure and desires of family members as part of ‘the moral arts of everyday life’. Using social theories of consumption and practice sociology we argue that food choices and practices – easy or not – need to be interpreted as part of the role that consumption plays in political citizenship and moral subjectivity. In the Western Sydney context, food practices are essentially household budget and family nourishment practices rather than nutrition and sustainability practices; a position which is not addressed in the government’s new food policies or wage determination processes.     

Consumer valuation of information about food safety achieved using biotechnology: Evidence from new potato products

This study focuses on the role of food labels and information for affecting consumers’ valuation of food safety achieved through application of biotechnological (biotech) methods. In 2002, potato products cooked to a high temperature were first reported to contain the human carcinogen acrylamide. Research discoveries using genetic engineering can substantially reduce carcinogenic-forming potential, and thereby increase food safety of potato products. Adult consumers from three distant regions of the U.S. were the subjects in lab auctions of potato products. They engaged in distinct rounds of bidding, first without packaged information and again after receiving information about the food safety risks and benefits of new biotech potato products. The study finds that willingness-to-pay (WTP) for these new potato products are not significantly different from conventional potato products under no information. However, exposure to a scientific perspective and scientific plus industry perspectives increases participants’ willingness-to-pay for the new potato products and reduces willingness-to-pay for conventional products. Exposure to the negative perspective on the new technology significantly reduces willingness-to-pay. Consumer valuation of the new potato products is affected by food labels, information, and consumer attributes. A consumer information program could be needed to gain consumer acceptance of these potato products or other foods that have been genetically modified to increase certain food safety dimensions.     

Evaluation of publicity measures relating to the EU beef labelling system in Belgium

In response to growing consumer concerns about beef safety, the European Commission enacted several regulations concerning the identification and registration of bovine animals and compulsory labelling of beef and beef products. Additionally, the Commission provided funds for informing consumers about the guarantees offered by the traceability systems and the indicators on labels. This paper focuses on the evaluation of such publicity measures in Belgium during September 2000. The publicity campaign included a mass media advertisement with direct response components, and the distribution of a detailed information leaflet. The evaluation methodology includes cross-sectional data collection through consumer surveys pre and post the publicity event. The compulsory beef label indicators emerge as the least important and least attended cues by beef consumers. While the mass media advertisement scored well in terms of recall rate, informative content evaluation, and restoration of consumer confidence in beef, the direct response component and leaflet distribution were less successful. Implications pertain to the future planning and implementation of similar consumer information policies and publicity campaigns.     

Chinese consumers’ preferences for food quality test/measurement indicators and cues of milk powder: A case of Zhengzhou,China

Many food regulations focus on test/measurement indicators, such as hazard analysis and critical control points (HACCP) and traceability, etc. Other than these indicators, the food industry uses various cues such as product origin as indicators of product quality. However, in an environment where consumers’ confidence in food safety is low due to frequent food safety scandals, little is known about the efficiency of these test/measurement indicators and cues. This paper used the primary data collected in Zhengzhou (China) to estimate consumers’ preferences for test/measurement indicators and a new cue of “own farm” for milk powder. Our results show that country of origin is the most important cue attribute, followed by price and own farm. The importance of test/measurement indicators such as organic, traceability, and HACCP certification is relatively low. Also, the individual parameter estimates show that consumers’ preferences for test/measurement indicators currently in the market are weak and fragile. Interestingly, price has an inverse-U-shaped relationship with consumer utility, implying that Chinese consumers may perceive low-price milk powder as low quality. The results of this study provide important insight for regulatory authorities and the food industry to develop more effective policies and programs to improve consumer preferences for milk powder.