Bundling food labels: What role could the labels Organic, Local and Low Fat play in fostering the demand for animal-friendly meat

This study investigates whether and how the demand for animal-friendly pork can benefit from the individual and joint use of the label Animal Friendly, Organic, Local, and Low Fat. A choice experiment was conducted to collect the data. The data were analyzed using the random parameter logit and the latent class models. Three consumer segments were identified. Consumers in Segment 1 (pro-welfare consumers-39% of all respondents) were found to highly value the four labels. The results showed that their price premium for animal-friendly pork could be increased significantly if the product is also labeled as Local or Low Fat. The members of Segment 2 (Welfare-reluctant consumers-41% of all respondents) were found to negatively value the use of the label Animal Friendly. For welfare-reluctant consumers, label bundling is of marginal effect. The rem1aining 20% of respondents (Indifferent consumers) were found to be indifferent to whether the labels Animal Friendly, Organic, and Local are used or not. However, their demand for animal-friendly pork could significantly increase if the pork is also labeled as Organic. [EconLit Citations: C35, C83, D12, Q13, Q18].

Automated summary

This study examines the demand for animal-friendly pork and how it is affected by different labels. Three consumer segments were identified, with pro-welfare consumers placing high value on the animal-friendly label, while welfare-reluctant consumers held negative views towards it.