Retail channel and consumer demand for food quality in China

Ortega, David L.; Wang, H. Holly; Wu, Laping; Hong, Soo Jeong

doi:10.1016/j.chieco.2015.04.005

Cited by 50 publications

(27 citation statements)

References 45 publications

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“…This finding is further reinforced by Ortega et al. (), who show that income growth goes hand‐in‐hand with rising demand for food products that have greater value‐added features, reflecting modern processing and enhanced marketing services. It is worth noting though that many previous studies rely on unit values or average category prices, given that actual price data are rarely available.…”

Section: Introductionmentioning

confidence: 81%

An econometric analysis of demand for food quantity and quality in urban China

Hovhannisyan

Mendis

Bastian

2018

Agricultural Economics

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This article offers an analytical framework for studying consumer demand for food quality based on a theory-consistent demand model, namely, the Exact Affine Stone Index specification. Importantly, it accounts for unobserved consumer and regional heterogeneity, and allows for arbitrary Engel curves. The empirical value of our framework is illustrated in an econometric analysis of demand for food quality in China. Evaluating possible structural changes in consumer food expenditures in China is of paramount importance, given the ever-increasing global role of China and the implications of the structural food preference changes for the global food system. The major findings emerging from this study indicate that income is an important determinant of demand for food quality and quantity with the relatively more affluent provinces having a higher affinity for food quality. JEL classifications: D11, D12

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Section: Introductionmentioning

confidence: 81%

An econometric analysis of demand for food quantity and quality in urban China

Hovhannisyan

Mendis

Bastian

2018

Agricultural Economics

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“…Food safety, in particular, is considered a key purchase driver with WTP up to 100% 1 in some cases (Ortega et al, 2011) where food safety scares can influence preferences . Improvements in food safety are valued by both developed economy consumers (Erdem, 2015;Ortega, Wang, & Olynk Widmar, 2014;Viegas, Nunes, Madureira, Fontes, & Santos, 2014) as well as developing economy consumers (Chalak & Abiad, 2012;Ortega, Wang, Wu, & Hong, 2015;Probst, Houedjofonon, Ayerakwa, & Haas, 2012;Tait et al, 2016;Wu, Yin, Xu, & Zhu, 2014). Food safety improvements may be preferred over animal welfare and environmental quality for meat products (Ortega et al, 2015;Tait et al, 2016) or that the latter two act as cues for safety (Viegas et al, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

Estimation of consumer willingness‐to‐pay for social responsibility in fruit and vegetable products: A cross‐country comparison using a choice experiment

Miller

Tait

Saunders

et al. 2017

J of Consumer Behaviour

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Choice experiments are used to assess consumer preferences and willingness‐to‐pay (WTP) for different food attributes worldwide. These studies also include credence attributes which are the product attributes that are not immediately observable to consumers without appropriate information and labelling, such as animal welfare, food safety, and social responsibility. Although choice experiment application has considered many of these attributes, studies focused on social responsibility are scant. Building on previous work comparing developed and developing countries, this paper focuses on WTP estimation for social responsibility. Surveys of fruit and vegetable consumers were conducted in United Kingdom (UK), Japan, India, and Indonesia in 2015. Results indicate WTP for an increase from minimum to improved standard for social responsibility ranges from 16% to 30% (median), and 6% to 26% (median) from improved to a high standard. Premiums vary between countries but, overall, demonstrate the significant importance of social responsibility consideration in consumer choices. Significant differences on WTP were observed between Japan and other countries, as well as between UK and Indonesia for the improved social responsibility standard, and across UK, Indonesia, and India for the high standard. Findings contribute to increasing understanding of consumer preferences across countries, revealing significant preference heterogeneity towards social responsibility.

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“…Official statistics indicate that per capita consumption of animal products (including meat, eggs, milk, and aquatic products) among urban households rose from 44.4 to 81.1 kilograms during the period of 1997-2017, with a growth rate of 82.7% [1]. Meanwhile, the focus of food demand has shifted from quantity targets, e.g., to ensure food security, to quality aspects, such as food variety, nutritional content, and food safety [2,3]. In particular, shocked by a series food-safety scandals, including the notorious incident of melamine-contaminated infant formulas in 2008, Chinese consumers have started to pay considerable attention to information on the manufacturer, nutrition content, and production process of animal products [4].…”

Section: Introductionmentioning

confidence: 99%

“…In particular, due to insufficient green fodder content in dairy cow rations, the average lactation yield of Chinese dairy cows (5 tons) is about 45% lower than that of their American counterparts (9 tons) [9]. The low quality of livestock products also creates room for illegal practice among irresponsible food providers, who often use illegal additives and preservatives to increase sales, whereby imposing a serious burden of health risks on Chinese consumers [2][3][4]. Secondly, the ever-heavier reliance of China's livestock sector on feed grains has deteriorated the pressing problem of "competition for grain between humans and animals" in China [12].…”

Section: Introductionmentioning

confidence: 99%

What Drives Green Fodder Supply in China?—A Nerlovian Analysis with LASSO Variable Selection

2019

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To understand key factors that drive China’s green fodder supply, this study estimates a Nerlovian partial-adjustment model, using provincial-level panel data spanning two decades (1997–2016). Based on a set of explanatory variables selected by the LASSO (Least Absolute Shrinkage and Selection Operator) method, estimation of the Nerlovian model by the system-GMM (Generalized Method of Moments) method yields three key findings. First, while farmers’ previous cultivation decisions on green fodder supply strongly predict their current decisions, without the influence of other drivers, China’s green fodder supply tends to decline over time. Second, among the identified drivers, government policy plays the most significant role—the availability of subsidies for cultivation of green fodder crops raises the sown area of green fodder crops by more than 30 percent. In contrast, farmer’s sown-area decision is only modestly responsive to price incentives. Finally, while the stock of fixed capital inputs (e.g., number of combine harvesters) and natural disasters (e.g., floods) both affect green fodder supply, their impacts are small.

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Retail channel and consumer demand for food quality in China

Cited by 50 publications

References 45 publications

An econometric analysis of demand for food quantity and quality in urban China

An econometric analysis of demand for food quantity and quality in urban China

Estimation of consumer willingness‐to‐pay for social responsibility in fruit and vegetable products: A cross‐country comparison using a choice experiment

What Drives Green Fodder Supply in China?—A Nerlovian Analysis with LASSO Variable Selection

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