Demand for value-added pork in Sweden: a latent class model approach

Abstract

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

Are Local and Organic Claims Complements or Substitutes? A Consumer Preferences Study for Eggs

“…In other words, within each segment, consumer preferences are homogeneous but preferences vary between segments, reflecting a "lumpy" spread of preferences (Hynes et al, 2008). This modelling approach has also been used to better understand consumer preferences for agricultural products by identifying distinct valuation and behaviour patterns for each market segment (Hu et al, 2004;Kontoleon and Yabe, 2006;Nilsson et al, 2006;Cortiñas et al, 2007;Liljenstolpe, 2011). We use the latent class model as we anticipate differing valuation patterns, which may result in a differentiated marketing strategy according to consumer segments.…”

Underlying Motivations of Organic Food Purchase Intentions

“…The studies relating to organic foods consumption reveal that consumers perceive organic foods to be healthier and safer (Magnusson et al., ; Lea & Worsley, ; Liljenstolpe, ; Shepard et al., 2005; Michaelidou & Hassan, ; Hoefkens et al., ). This dimension evokes an understanding that consumers may see some utilitarian benefits in organic food consumption.…”

Synergies and Trade-Offs for Sustainable Food Production in Sweden: An Integrated Approach

“…This makes biosecurity measures, like cleaning and disinfection of transport vehicles, important actions towards more sustainable food production [34]. In addition, animal transport is related to animal welfare issues, and increased use of mobile abattoirs and improved animal loading protocols (e.g., using loading docks) can reduce animal stress and improve welfare [35][36][37].…”

“…Labelling of sustainable food is a way of communicating sustainability through packaging and marketing. Several studies have demonstrated that Swedish consumers generally are positive towards climate labelling [93,97], and show a willingness to pay more for locally sourced food or food produced with more regard taken to climate, environment, and animal welfare [35,36,98], thereby potentially increasing demand for these products [97]. However, results also indicate an inconsistency in willingness to pay between consumers [36].…”

“…That increased production efficiency and more efficient nutrient handling, especially for livestock production [52], when shifting land allocation to better quality land [53] and improving manure handling [54] can mitigate climate change and reduce environmental impacts; • that the recycling of nutrients from waste can decrease both GHG emissions and eutrophication [e.g., 85,88]; and • that improved labelling of sustainable food [36,98] and increased energy efficiency and decreased food wastage both in the food industry and at home [102,103] have positive impacts on climate change, the environment, and the economy.…”