Who buys regional fresh milk brands? An analysis of German household data

Abstract

AbstractFarmstead dairies produce, process, and market their milk locally under their own brands. Farmstead dairy brands (FDB) are thus competing against private labels and manufacturer brands, whose milk often comes from different areas and which are sold nationwide. Even though FDB cannot benefit from industrial economies of scale, they represent a small but successful and growing segment where demand has been rising for years, even though the demand for milk in general has been rather stagnant. Based on data from a German household panel it is evident that marketing of FDB milk through retail stores meets the trend for regional products and some consumers are increasingly willing to pay for local and regionally produced food. The results of a zero‐inflated negative binomial model revealed that middle‐aged, high income, and organic buying behaviors significantly influenced the purchase frequency of FDB milk in food retail. [EconLit Citations: Q130, D120, C23].