Demand for farm animal welfare and producer implications: Results from a field experiment in Michigan. (January 2018)

• Record Type: Journal Article
• Authors: Ortega, David L.; Wolf, Christopher A.
• Is Part Of: Food policy. Volume 74(2018)
• Page Start: 74
• Page End: 81
• Publication Date: 2018-01
• Subjects: Animal welfare -- BDM mechanism -- Consumer demand -- Gestation crate/stall -- Laying hen cage -- Mandatory labeling -- Producers; Food supply -- Periodicals; Food security -- Periodicals; Food -- Quality -- Periodicals; Food Supply -- Periodicals; Alimentation -- Périodiques; Electronic journals; 338.1905
• DOI: 10.1016/j.foodpol.2017.11.006
• Languages: English
• ISSNs: 0306-9192

Abstract

Highlights: Consumers are willing to pay significant animal welfare premiums for select products. Animal welfare premiums are product specific and should not be generalized. It is important to consider producer costs when evaluating demand for animal welfare. Producers bear the costs of changes brought about by mandates. Abstract: This study utilizes a Becker-DeGroot-Marschak (BDM) mechanism to assess Michigan consumer demand for animal welfare practices. Results are examined in the context of changing farm production costs and producer marketing margins. We find that while consumers are willing to pay significant premiums for animal welfare standards, failing to account for the costs associated with producing the entire animal under the new system could lead to suboptimal policy that negatively affects producer welfare. Our results suggest that consumer premiums for animal welfare are product specific and that WTP estimates should not be generalized to the entire animal. We discuss policy implications of our findings and highlight the importance of considering producer costs when evaluating consumer demand for farm animal welfare practices.