Price premiums for wildlife‐friendly rice: Insights from Japanese retail data

Abstract

Integrating the benefits associated with biodiversity into market mechanisms can play an important role in conservation practice. Food labeling is a widely used measure that highlights biodiversity conservation benefits to the market.However, few studies have explored the effects of labels on staple agricultural products that are associated with agro-ecosystem conservation. We evaluated the biodiversity price premium of wildlife-friendly rice by analyzing data from retail stores in Japan. The results showed a significant positive impact of biodiversity-relevant labels on rice prices. Specifically, rice with this type of labeling had about 20% price premium as compared with rice that did not. The results also showed that outcome-based certifications have the potential to work well in the market. The findings highlight the role of conservation marketing in agro-ecosystem conservation and its potential to help balance biodiversity conservation and food security.

From boutique to mainstream: Upscaling wildlife‐friendly farming through consumer premiums

“…Our results are consistent with Mameno et al (2021) who found WTP values for wildlife‐friendly rice were higher than for other attributes including a reduction in agro‐chemical use. Similarly, Loureiro and Lotade (2005) found a higher WTP for both shade‐grown and fair‐trade coffee eco‐labels, compared to an organic label.…”

“…These WTP values were much higher than similar studies. For example, in Japan, Mameno et al (2021) used retail data and found consumers paid a premium of around 20% for wildlife‐friendly rice products, while in Vietnam, a CE revealed a premium for organic “crane‐friendly” rice would be around 77% (Khai & Yabe, 2015).…”

“…In 2020, the Sustainable Rice Platform launched an internationally standardized certification eco‐label (UNEP, 2020); however, while commendable, it neglects the specific biodiversity and habitat values of rice fields, which can be considerable. For example, bird‐friendly rice for crane, stork, and Ibis species across several Asian countries has succeeded in engaging consumers, raising conservation funds, and facilitating farmers to assist threatened species (Khai & Yabe, 2015; Mameno et al, 2021), while in California, waterbird conservation has been incorporated as an aspect of eco‐friendly‐labeled rice by several large producer groups (e.g. Robbins Rice, 2021; Rue & Forsman, 2021).…”

Socio-economic drivers of irrigated paddy land abandonment and agro-ecosystem degradation: Evidence from Japanese agricultural census data

“…Given our finding that higher income from agricultural products can prevent the abandonment of paddy lands, introducing a market-based approach can also enhance the conservation of multiple benefits from paddy lands. Previous studies have revealed that the market-based approach using wildlife labels is supported by consumers and generates higher revenue [ 40 , 41 , 81 ]. Moreover, environmentally-friendly farmers were negatively related to paddy land abandonment.…”

“…In light of this evidence, some governments have introduced measures such as EU direct payment schemes to prevent farmland abandonment [ 14 ]. Furthermore, it has attracted attention to a market-based approach that incentivizes sustainable farmland cultivation [ 40 , 41 ]. The market-based approach includes additional payments from consumers to maintain non-material benefits from farmland when they buy an agricultural product.…”