We use data from hypothetical and nonhypothetical choice-based conjoint analysis to estimate willingness to pay for local food products. The survey was administered to three groups: consumers from a buying club with experience with local and grass-fed production markets, a random sample of Maryland residents, and shoppers at a nonspecialty Maryland supermarket. We find that random-sample and supermarket shoppers are willing to pay a premium for local products but view local and grass-fed production as substitutes. Conversely, buying-club members are less willing to pay for local production than the other groups but do not conflate local and grass-fed production.
a b s t r a c tFoodborne illnesses associated with fresh produce have dramatically increased within the last decade. Good Agricultural Practices (GAP) were developed to address potential sources of pre-harvest microbial contamination, but certification remains low. The majority of mid-Atlantic vegetable farms are fresh market, but limited information is available about what on-farm production practices are being utilized to mitigate food safety risks. Our goal was to assess Maryland and Delaware vegetable producers' understanding and implementation of GAP. An electronic survey on pre-harvest production practices was administered at commercial grower meetings in 2010 and 2013. A total of 313 surveys were analyzed, and Probit regression was used to estimate the average marginal effects of farm scale, years in production and market channel on the probability of using different on-farm food safety practices. Generally, food safety practices did not differ across farm scale or years in production. However, market channel did influence a grower's decision to implement some food safety practices. Growers who marketed their produce primarily through wholesale channels were more likely to: have written policies for how they grew and handled their produce, test their irrigation water at least once a year for microbial contamination, or be GAP-certified. Economic constraints were not reported as the primary obstacle for GAP implementation in either survey. While more research is needed to better understand how market channel influences decision-making activities including on-farm food safety practices, this study highlights the complexity of the issue and the need for GAP educational programs to expand beyond a onesize-fits-all approach.
Common pool resources often face overexploitation, but collective action can counteract that tendency. We investigate collective investment in reputation for produce food safety, a common pool resource because of limited branding and traceability, by U.S. commodity organizations. We use a unique dataset constructed with data from U.S. Department of Agriculture, Food and Drug Administration, Centers for Disease Control and Prevention, and industry to provide novel evidence on collective investment in common pool resources. Notably, only large shocks to reputation such as foodborne disease outbreaks resulting in hospitalization increase the likelihood of food safety guideline adoption. Adoption of food safety guidelines by government‐backed organizations results in improvements in some food safety outcomes.
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We assessed consumer acceptance of quick response (QR) code technology to communicate (1) product shelflife and (2) shelf-life dependent pricing, by offering identical half-gallon fluid milk with both traditional printed best-by dates and with QR codes to convey best-by dates over an 8-wk time period in a retail setting. The study included 2 phases to determine (1) consumers' receptiveness to QR codes to access product shelf-life information and (2) if offering a discounted price based on shelf-life would change consumers' willingness to use QR codes and would increase sales of milk nearing its best-by date. Our findings indicate that at least some consumer segments are likely to accept QR code technology to access shelf-life information. Hence, this technology represents a strategic opportunity to better communicate shelf-life information and to reduce food waste (e.g., by encouraging sales of products close to end of shelf life through reduced prices, using dynamic pricing approaches).
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