The mountain product label: Choice drivers and price premium

Abstract

Mountain food production contributes to the support of local economies and cultures and it provides quality food products due to the characteristics of the raw materials combined with traditional processing conditions. Consumers perceive those products as environmentally friendly and of high quality. To support this production, the European Union has introduced the optional quality term ‘mountain product label’ (MPL). The objective of this paper is to investigate consumer preferences and willingness to pay for cheese with the MPL. Cheese was chosen because it is one of the specialties of these areas. A survey, including a labelled discrete choice experiment, was conducted with 511 Italian cheese consumers. Data were analyzed through a random-parameter logit model. We compared the MPL with the Protected Designation of Origin (PDO) label. The results show that consumers are not aware of the MPL. However, they like it as much as PDO. A higher willingness to pay for the MPL was found compared to products with no quality labels, indicating a premium price for these products. Based on these results, policy intervention strategies are needed to support quality supply chains in mountain areas and publicize this label to the consumer market.