Abstract

Over the last few years, the global consumer concerns for quality standards in food production and distribution have increased, and actions towards a more sustainable agrifood system have become necessary. Ethical labeling schemes, such as animal welfare and fair labor, can help in this direction. To better understand if these labels are indeed an important element in consumer’s buying decisions and to be able to quantify the magnitude of their importance, this study uses the contingent valuation method. Results reveal that respondents place a positive value on both labeling schemes, and they are willing to pay an average premium of 27% and 36% for feta cheese carrying an animal welfare and a fair labor label, respectively. Estimated willingness to pay (WTP) values are affected by demographic characteristics as well as attitudinal variables such as gender, age, prior knowledge of ethical certification labels, purchase frequency and ethically minded purchasing behavior. Overall results suggest that there is a strong market opportunity for both labeling schemes Ethical labeling can be an effective marketing tool for producers and distributors seeking to differentiate their feta cheese products. Furthermore, it is implied that consumers value issues related to labor exploitation in the dairy farming sector higher than inhuman treatment of animals.

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