"Increased traceability of food and food ingredients through the agri-food chain has featured in recent industry initiatives in the Canadian livestock sector and is an important facet of the new Canadian Agricultural Policy Framework (APF). While traceability is usually implicitly associated with ensuring food safety and delivering quality assurances, there has been very little economic analysis of the functions of traceability systems and the value that consumers place on traceability assurances. This paper examines the economic incentives for implementing traceability systems in the meat and livestock sector. Experimental auctions are used to assess the willingness to pay of Canadian consumers for a traceability assurance, a food safety assurance, and an on-farm production method assurance for beef and pork products. Results from these laboratory market experiments provide insights into the relative value for Canadian consumers of traceability and quality assurances. Traceability, in the absence of quality verification, is of limited value to individual consumers. Bundling traceability with quality assurances has the potential to deliver more value." Copyright 2005 Canadian Agricultural Economics Society.
"Domestic bison herds in Canada and the United States have grown rapidly over the past decade. For this growth to be sustainable, viable markets for bison meat products are necessary. Bison products are available at the retail level to only a limited extent in some localized markets. Very little is known about consumer preferences for bison in Canada. A consumer research study was conducted across five Canadian locations. An experimental auction was used to evaluate willingness-to-pay (WTP) for bison versus beef, plus the marginal WTP for bison with additional health-related attributes. Bison products verified to be lower in fat than beef, and bison verified to have been produced without the use of growth hormones were evaluated. Results suggest that there was no significant WTP for bison over beef, either with or without the additional quality assurances. Delivering a positive eating experience to consumers was more important than the health-related attributes "per se". Distinct market segments with significantly different WTP for bison are identified. Some regional differences are also apparent. The industry cannot rely solely on the touted health benefits of bison to deliver a competitive advantage over beef. While some consumers may be willing to pay more for these health-related attributes, consumers in general are unlikely to compromise eating experience." Copyright 2006 Canadian Agricultural Economics Society.
Purpose – The fisheries and aquaculture industry has observed substantial reduction in the demand for farmed Atlantic salmon after the food incidence of polychlorinated biphenyls in the product. To regain consumer confidence in the quality and safety of the product new policies, such as advanced traceability and identity preservation systems in the fisheries and aquaculture industry have been suggested. The purpose of this paper is to examine consumers’ preferences to pay a premium price for certified farmed Atlantic salmon that is passed through various quality and traceability systems in the province of Newfoundland and Labrador, Canada. Design/methodology/approach – The paper uses the contingent valuation (CV) method by estimating a probit regression model to assess consumers’ preferences for certified farmed Atlantic salmon. In particular, the paper measures consumers’ willingness to pay (WTP) a premium price to purchase the product. The CV method is the most widely used methodology in measuring individuals’ attitudes toward purchasing certified products. To estimate the parameters of the model, the authors carried out a consumer survey in spring 2010 and successfully completed 120 questionnaires in the province. Findings – The paper provides empirical insights about how households are interested in consuming certified farm-raised Atlantic salmon by paying an additional premium price to purchase the product. The results of the study show that although consumers believe that traceability methods, on average, will increase the price of certified farmed Atlantic salmon their preferences toward the consumption of the product will not be changed. Research limitations/implications – Since the paper uses the CV method to evaluate individuals’ preferences for certified farm-raised Atlantic salmon, the authors also suggest another study that uses a non-hypothetical choice experimental approach to elicit households’ WTP a premium price for the product. Originality/value – This paper shows how consumers’ decisions to purchase certified farm-raised Atlantic salmon can be affected by a series of demographic, socio-economicand other variables that reflect consumers’ awareness of issues surroundings farmed Atlantic salmon and quality assurance.
This paper examines and compares the technical efficiency measures of Ontario and New York dairy producers for the period 1992 to 1998. A nonparametric stochastic frontier model is introduced to estimate technical efficiency. The backfitting algorithm of Breiman and Friedman is used to estimate the frontier. Empirical results indicate that during the period of study, New York dairy farmers produced milk more efficiently than Ontario dairy producers, but the magnitude of the difference was small. The estimated mean technical efficiency for the former group is 0.602 as compared to 0.532 for the latter. The results also indicated that over time, dairy farms in both regions improved their level of technical efficiency. Furthermore, no correlation was found between farm size and estimated technical efficiency.
Since the food incidence of polychlorinated biphenyls in farm-raised Atlantic salmon, its market demand has drastically changed as a result of consumers mistrust in both the quality and safety of the product. Policymakers have been trying to find ways to ensure consumers that farm-raised Atlantic salmon is safe. One of the suggested policies is the implementation of integrated traceability methods and quality control systems. This article examines consumer choice between food safety and food quality to purchase certified farm-raised Atlantic salmon, defined as a product that has passed through various stages of traceability systems in the province of Newfoundland and Labrador, Canada.
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