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In this study, the demand for animal welfare attributes when buying pork fillet is investigated among Swedish respondents. The issue is of importance in order to ensure an economically viable pig industry while applying an increasing number of animal friendly practices. In order to obtain information about consumer demand, an indirect utility function and willingness to pay (WTP) for animal welfare attributes are estimated. The attributes are solely associated with animal friendly practices. An investigation of numerous housing and managerial practices of pig production has not yet been performed. The indirect utility function is estimated using a random parameter logit model. A realistic approach when modeling consumer choice is to allow for heterogeneity in preferences. The relevance of assuming randomness of some of the parameters is evaluated by using a specification test developed by McFadden and Train (2000). The WTP is also estimated at the individual level. The results indicate that WTP for animal welfare attributes may be negative or positive. The preferences are also heterogeneous among respondents, which may be explained by a segmentation of preferences. Finally, the WTP estimates for animal welfare practices are compared with cost estimates for such production systems. [Econlit subject codes: C010, C500, Q100] © 2008 Wiley Periodicals, Inc.

A choice experiment survey dataset is used to investigate heterogeneous preferences among Swedish consumers for attributes of pig production. To model the preferences, a random parameter logit model and a latent class model are estimated and compared. The comparison, based on predicted probability distribution, regression analysis of the probabilities, and investigation of the probability ratio, suggests that the latent class model is preferred to the random parameter logit model. Estimating a latent class model with three latent classes, using group dependent variables, i.e., class indicators, suggests that preferences may be characterized by food safety and animal welfare dimensions. Calculating the willingness to pay for the variables within each class, the author found that Class 1 is oriented towards animal welfare, Class 3 is oriented towards food safety, and Class 2 is intermediate of Class 1 and Class 3. Moreover, class membership and its implication for the assessment of organic pork are investigated. The respondents within the ''food safety-conscious'' class have a strong belief that organic food products are safer, though this class is also found to be the most price sensitive. The ''animal welfare-conscious'' respondents are also price sensitive, but to a lesser extent than the food safetyconscious consumers. Moreover, respondents that show a concern for animal welfare do not believe that organic pork is produced under more animal friendly conditions. The relatively large size of the animal welfare-conscious class and the negative perception of organic pork found in this group suggest that market opportunities exist for the marketing of animal welfare-certified products. [EconLit citations: C010; C500; Q100]. r

The ownership of food processing firms affects farmers supplying those firms with agricultural products. This study examined the effects of supplying either a farmer-controlled business (FCB) or competing investor-owned firms (IOFs). An FCB is owned and controlled partly by farmers and partly by external investors. Analysis of data obtained from a survey of pig producers in Sweden indicated that partial ownership by farmers resulted in them perceiving the FCB as having some cooperative traits. The FCB suppliers were less inclined to exit, used their voice more, and showed greater loyalty than the IOF suppliers. In the long term, however, the farmers' relatively positive view of FCBs might change because this organizational form contains inherent conflicts between the interests of the farmers and the external investors. As competition intensity increases and primary agriculture becomes increasingly concentrated, the co-operative features of an FCB are due to become vaguer over time. These problems may threaten the long-term existence of FCBs.

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