Exploring demand for eco-labeled dairy product attributes in Vermont

Abstract

Purpose The purpose of this paper is to investigate the potential of eco-labels to help dairy farm viability as one partial solution to a complex problem. Specifically, it aims to understand which attributes are most likely to increase consumption and garner price premiums. Design/methodology/approach This paper uses key informant interviews and a convenience sample (n=203) of supermarket shoppers in Vermont. It uses Likert-type scales to measure the likelihood of increased purchase and paying price premiums based on a series attributes including animal welfare, fair labor standards, family farms and environmental stewardship. It calculates and compares mean ratings of each attribute and use an ordinal regression to measure the effect of demographic attributes on each attribute’s rating. Findings Interviewed stakeholders named low milk prices and evolving industry structure as harming dairy farm viability. They list supply control and improved promotion as potential solutions. Survey respondents say attributes supporting animal welfare, farm workers, family farms and healthy soil are most likely to garner increased consumption and price premiums. Research limitations/implications The authors use a convenience sample, so generalization to larger populations is not advisable. Practical implications Promotion around animal welfare, farm workers, family farms and healthy soil is most likely to be effective, based on the results of this study. The survey responses are very highly correlated, suggesting that a multi-attribute eco-label may garner the most support. Social implications This work can inform efforts to promote dairy farm viability, an important sector of the agricultural economy in Vermont and elsewhere in the USA. Originality/value This research provides the ranking of attributes which may appear on eco-labels by current consumers of dairy products in a state with an important dairy heritage and industry.