Carl Johan Lagerkvist

Consumer Benefits of Labels and Bans on GM Foods—Choice Experiments with Swedish Consumers

The European Union has been relatively cautious about using biotechnology in food production. A label regime combined with the right of individual member states to ban introduction of new genetically modified (GM) strains means that GM food products in effect are banned in many countries. We show how it is possible to empirically test whether a ban can be motivated by reference to potential negative externalities. This is followed up by results from a choice experiment. We cannot reject the hypothesis of equal WTP for a ban and a labeling scheme.

Farm Animal Welfare - testing for market failure

Our increasingly heterogeneous food is at least partly due to concerns over conventional production of farm livestock. Some of these new products have been demand driven while others are a result of politically decided restrictions on production techniques. From a policy perspective, the interesting question is whether there exists a market failure. We suggest a survey design that enables the researcher to measure the eventual external market failures in farm livestock production. Applying this survey design to the question of battery cages in egg production, we cannot show that there exists a market failure. The policy implications are applicable to not only the question of egg production, they can be extended to a general discussion of how potential market failures for all kind of farm livestock should be managed. Logically, if an external effect cannot be shown, the consumer is better off herself making the choice of how her food is produced.

Consumer Preferences for Food Product Quality Attributes from Swedish Agriculture

Abstract This paper employs a choice experiment to obtain consumer preferences and willingness to pay for food product quality attributes currently not available in Sweden. Data were obtained from a large mail survey and estimated with a random parameter logit model. We found evidence for intraproduct differences in consumer preferences for identical attributes, as well as interproduct discrepancies in ranking of attributes. Furthermore, we found evidence of a market failure relating to the potential use of genetically modified animal fodder. Finally, we found support for the idea that a cheap-talk script can alleviate problems of external validity of choice experiments. Our results are useful in forming product differentiation strategies within the food industry, as well as for the formation of food policy.

Valuing public goods of the agricultural landscape: a choice experiment using reference points to capture observable heterogeneity

The willingness to pay (WTP) for different types of elements and other environmental qualities of the agricultural landscape were investigated by a choice experiment study. To get value measures of a set of attributes as policy relevant as possible, the WTP for 28 levels of 12 attributes was estimated. Two survey versions concerned permanent grassland and two concerned field elements of cultivated land. A sample of 8000 randomly selected Swedish inhabitants was used. The estimated values vary significantly between linear field elements and grassland types, where stone walls and oak-wooded pastures, respectively have the highest marginal WTP. Highly valued environmental qualities are biodiversity, visibility and absence of brushwood. Reference points were included to capture preference heterogeneity. The study cannot reject that respondents may value environmental service levels based on their reference points.

Measuring farmers’ preferences for risk: a domain-specific risk preference scale

A behavioral framework and psychometric theory were used to develop a domain-specific scale to measure farmers’ preferences (attitudes) for risk, when the expected benefits and perceived risks of each domain were explicitly modeled. Exploratory factor analyses based on a sample of 237 Swedish farmers highlighted three risk domains, which we termed ‘Up-to-date and in deliberate control of production,’ ‘Carefulness and planning in general’ and ‘Progressive farming.’ The results suggested that farmers are risk-averse in all domains. External validation of the domain-specific measurement scale suggested that it could significantly predict the observed five-year volatility in farm income. The suggested domain-specific measurement scale is of practical importance for the farmers themselves, the agribusiness, and for policy-makers.

Farm Cooperation to Improve Sustainability

Abstract In this paper, it is demonstrated that partnership arrangements between farmers might be a way to secure the economic viability of their farms as well as to increase profitability. The article discusses empirical analyses of three different forms of collaboration, with an emphasis on the environmental improvements associated with collaboration. Collaboration between a dairy farm and a crop farm is analyzed in the first case. The results show that potential gains from improved diversification and crop rotation are substantial, and even larger when the collaboration also involves machinery. The second analysis considers external integration between farrowing and finishing-pig operations. Gains from collaboration originate from biological and technical factors, such as improved growth rate of the pigs and better utilization of buildings. Finally, an evaluation of a group of collaborating crop farmers is performed. In this case, the benefits that arise are mainly due to reduced machinery costs and/or gains due to other factors, such as improved crop rotation and managerial/marketing strategies.

Consumer Willingness to Pay for Safer Vegetables in Urban Markets of a Developing Country: The Case of Kale in Nairobi, Kenya

Abstract The rapid urban population growth, rising level of urban poverty, and problems with food supply and distribution systems have increased the importance of developing local supplies of perishable produce of safe and good nutritional value in developing countries. This examination of consumer preferences for food safety across major urban fresh vegetable market categories revealed that the explanations behind purchase intentions were market segment-specific. There is a need to target agricultural policies relating to handling practices and for public health policies to be more differentiated in promoting food safety.

Defining and measuring farmers' attitudes to farm animal welfare

Identifying farmers’ attitudes to farm animal welfare (FAW) is an important step in determining farmers’ efforts to improve FAW, knowledge of which is of particular importance for understanding how the living conditions of production animals are determined. This study developed a hypothetical model of farmers’ attitudes to FAW, including the antecedents of these attitudes and possible influences on FAW-related behaviour. Two models for empirical measurement of attitudes, namely formative and reflective models, were also evaluated and compared. The results suggested that choice of measurement model considerably influences conceptualisation of attitudes and that there may be considerable model misspecifications in previous literature relating to farmers’ FAW attitudes. Existing literature on farmers’ FAW attitudes was reviewed with the aim of providing a preliminary indication of the coverage of farmers’ FAW attitudes. A need for future research related to farmers’ attitudes to FAW was identified.

Decision making for animal health and welfare: integrating risk-benefit analysis with prospect theory.

This study integrated risk-benefit analysis with prospect theory with the overall objective of identifying the type of management behavior represented by farmers’ choices of mastitis control options (MCOs). Two exploratory factor analyses, based on 163 and 175 Swedish farmers, respectively, highlighted attitudes to MCOs related to: (1) grouping cows and applying milking order to prevent spread of existing infection and (2) working in a precautionary way to prevent mastitis occurring. This was interpreted as being based on (1) reactive management behavior on detection of udder-health problems in individual cows and (2) proactive management behavior to prevent mastitis developing. Farmers’ assessments of these MCOs were found to be based on asymmetrical evaluations of risks and benefits, suggesting that farmers’ management behavior depends on their individual reference point. In particular, attitudes to MCOs related to grouping cows and applying milking order to prevent the spread of mastitis once infected cows were detected were stronger in the risk domain than in the benefit domain, in accordance with loss aversion. In contrast, attitudes to MCOs related to working in a precautionary way to prevent cows from becoming infected in the first place were stronger in the benefit domain than in the risk domain, in accordance with reverse loss aversion. These findings are of practical importance for farmers and agribusiness and in public health protection work to reduce the current extensive use of antibiotics in dairy herds.

Off‐farm income and farm capital accumulation: a farm‐level analysis

An intertemporal model in which farm capital accumulation and work choices by a single‐agent farm household are interdependent is developed and tested using a farm‐level data set. Estimation is done using a recursive two‐step simultaneous censored equations model. The results of this study are of relevance for an understanding of structural change within the agricultural sector as they point toward the emergence of a dual farming structure and rigidity in off‐farm work adjustments. Our findings suggest that off farm income reliance is associated with a farm asset disinvestment strategy, that there is rigidity in off farm income reliance, and that factors explaining farm capital growth indirectly affect the off farm reliance.