How Consumers in the UK and Spain Value the Coexistence of the Claims Low Fat, Local, Organic and Low Greenhouse Gas Emissions.

Abstract

This study investigates the substitution and complementary effects for beef mince attributes drawing on data from large choice experiments conducted in the UK and Spain. In both countries, consumers were found to be willing to pay a price premium for the individual use of the labels “Low Fat” (UK: €3.41, Spain: €1.94), “Moderate Fat” (UK: €2.23, Spain: €1.57), “Local” (UK: €1.54, Spain: €1.61), “National” (UK: €1.33, Spain: €1.37), “Organic” (UK: €1.02, Spain: €1.09) and “Low Greenhouse Gas Emissions (GHG)” (UK: €2.05, Spain: €0.96). The results showed that consumers in both countries do not treat desirable food attributes as unrelated. In particular, consumers in Spain are willing to pay a price premium for the use of the labels “Local”, “Organic” and “Low GHG” on beef mince that is also labelled as having low or moderate fat content. By contrast, consumers in the UK were found to discount the coexistence of the labels “Low Fat” and “Organic”, “Low Fat” and “Low GHG” and “Moderate Fat” and “Low GHG”. The results, however, suggest that in the UK the demand for beef mince with moderate (low) fat content can be increased if it is also labelled as “Organic” or “Low GHG” (“Local”).