Eco-labels matter: Coffee consumers value agrochemical-free attributes over biodiversity conservation

Sustainability certifications, or eco-labels, inform consumers about the environmental conservation attributes of a product and must be updated to accommodate advances in scientific knowledge and changes in market conditions. We evaluated the willingness to pay (WTP) for sustainability attributes of the Bird Friendly (R) coffee certification and found that coffee consumers value an agrochemical-free (e.g. organic) label over a biodiversity conservation label. We designed and implemented a choice experiment where consumers choose between conventional coffee and coffee with four sustainable attributes often listed on packages: organic, pesticide-free, shade-grown, and Bird Friendly. Consumers were willing to pay a premium of $2.20 per 12 oz for Bird Friendly coffee over a conventional coffee with no sustainable attributes. Premiums are higher for organic ($5.80) or pesticide-free coffee ($3.60), and lower for shade grown coffee ($1.40). Because consumers value agrochemical management relative to other features of biodiversity, our results suggest that ecolabels can maximize consumer interest by enforcing and promoting agrochemical standards, i.e. production without pesticides, in addition to the characteristics of preserving biodiversity.

Automated summary

Consumers value pesticide-free labels more than biodiversity conservation labels when purchasing coffee, indicating the importance of agrochemical management in eco-labeling to maximize consumer interest.