An Empirical Study on Consumer Food Safety Valuations: Stated Preference Approach

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The purpose of this research is to evaluate consumer's willingness to pay for food safety using stated preference methods.We examined the importance of the price, freshness, use of the HACCP label, and use of the Eco label (the latent attribute of the milk produced from the raw milk of dairy farms that comply with the law, which protects the environment by legally enforcing manure treatment) in consumer's milk purchasing decisions. Conjoint analysis was used to quantify the welfare change associated with the change in the levels of these attributes. We found that consumers have a positive perception of the HACCP label, the Eco-milk label, and the freshness of the milk.We employed contingent valuation methods to estimate willingness to pay to non-genetically modified green soybeans. The following results were derived from analysis. First, posting genetically modified green soybeans contents on label is valuable to consumers. Second, as the contents increase more and more, WTP to non-genetically modified green soybeans does not necessarily increase.Choice experiments were used to elicit consumer preferences for different attributes of organic and conventional tomatoes. The results demonstrated a positive willingness to pay among consumers for certified food safety such as country of origin labeling and traceability, and organic production practices.We developed a network experimental auction system, and used this system to obtain estimates of consumer willingness to pay for Salmonella-free eggs. We verified this experimental auction method both complement and offer a viable alternative to standard stated preference methods of valuing food safety.