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OLWResearchFindingsBrief_Consumers-WTP.pdf (3.43 MB)

Consumers' Willingness to Pay for Sustainability and Other Attributes

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posted on 2024-06-21, 03:57 authored by Jackie Fitchman
Evidence gathered by four separate Our Land and Water research programmes has found that food shoppers in New Zealand's key export markets do value attributes produced by responsible farming. A new plain-language Research Findings Brief summarises this research. Key points:
  • Changing practices on farms to meet new water and climate regulations can be turned into a marketing advantage in New Zealand's food export markets, and has the potential to significantly increase farm profitability.
  • Consumer willingness to pay (WTP) research provides evidence that consumers of New Zealand food exports will pay a price premium for sustainability and other attributes (credence attributes). This can increase returns to domestic producers and offset the costs of providing these attributes.
  • Credence attributes - product attributes such as environmental sustainability, animal welfare and cultural authenticity - are not directly observable by consumers at the point of sale, and are strongly related to on-farm production.
  • Research suggests the highest WTP is for certified organic products (31% premium for red meat, 29% for dairy products), and the lowest WTPs are for traceability (18% premium for red meat, 26% for dairy) and for a broad 'environmentally friendly' claim (19% for red meat, 25% for dairy).
Research Findings Brief prepared by Our Land and Water

Funding

Funded by the New Zealand Ministry for Business, Innovation and Employment's Our Land and Water National Science Challenge (Toitū te Whenua, Toiora te Wai) as part of project Rewarding Sustainable Practices|Integrating Value Chains|Credence Attributes On Farm|Eutrophication Product Footprinting

History

Publication date

2023-07-07

Language

  • English

Does this contain Māori information or data?

  • No

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