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Consumer trust and willingness to pay for certified animal-friendly products

Lookup NU author(s): Giuseppe Nocella, Riccardo Scarpa, Dr Lionel Hubbard



Increasing animal welfare standards requires changes along the supply chain which involve several stakeholders: scientists, farmers and people involved in transportation and slaughtering. The majority of researchers agree that compliance with these standards increases costs along the livestock value chain, especially for monitoring and certifying animal-friendly products. Knowledge of consumer willingness to pay (WTP) in such a decision context is paramount to understanding the magnitude of market incentives necessary to compensate all involved stakeholders. The market outcome of certification programs is dependent on consumer trust. Particularly, there is a need to understand to what extent consumers believe that stakeholders operating in the animal-friendly supply chain will respect certification standards. We examine these issues using a contingent valuation survey administered in five economically dominant EU countries. The implied WTP estimates are found to be sensitive to robust measures of consumer trust for certified animal-friendly products. Significant differences across countries are discussed.

Publication metadata

Author(s): Nocella, G, Scarpa, R, Hubbard, LJ

Publication type: Report

Publication status: Published

Series Title: Working Papers in Economics

Year: 2007

Pages: 25

Print publication date: 01/05/2007

Source Publication Date: May 2007

Report Number: 9/07

Institution: Department of Economics, University of Waikato

Place Published: Hamilton, New Zealand

URL: .