7 pages., Via online journal., Policy makers in the European Union are envisioning the introduction of a community farm animal welfare label which would allow consumers to align their consumption habits with their farm animal welfare preferences. For welfare labeling to be viable the market for livestock products produced to higher welfare standards has to be sufficiently segmented with consumers having sufficiently distinct and behaviourally consistent preferences. The present study investigates consumers’ preferences for meat produced to different welfare standards using a hypothetical welfare score. Data is obtained from a contingent valuation study carried out in Britain. The ordered prohbit model was estimated using Bayesian inference to obtain mean willingness to pay. We find decreasing marginal WTP as animal welfare levels increase and that people’s preferences for different levels of farm animal welfare are sufficiently differentiated making the introduction of a la belling scheme in the form of a certified rating system appear feasible.
33 pages., Via online journal., The legitimacy of the dominant intensive meat production system with
respect to the issue of animal welfare is increasingly being questioned by stakeholders across the meat supply chain. The current meat supply is highly undifferentiated, catering only for the extremes of morality concerns (i.e., conventional vs.
organic meat products). However, a latent need for compromise products has been
identified. That is, consumer differences exist regarding the trade-offs they make
between different aspects associated with meat consumption. The heterogeneity in
consumer demand could function as a starting point for market segmentation, targeting and positioning regarding animal welfare concepts that are differentiated in
terms of animal welfare and price levels. Despite this, stakeholders in the meat
supply chain seem to be trapped in the dominant business model focused on low
cost prices. This paper aims to identify conflicting interests that stakeholders in the
meat supply chain experience in order to increase understanding of why heterogeneous consumer preferences are not met by a more differentiated supply of meat
products produced at different levels of animal welfare standards. In addition,
characteristics of the supply chain that contribute to the existence of high exit
barriers and difficulty to shift to more animal-friendly production systems are
identified. Following the analysis of conflicting interests among stakeholders and
factors that contribute to difficulty to transform the existing dominant regime,
different routes are discussed that may help and motivate stakeholders to overcome
these barriers and stimulate the creation of new markets.
