Does it Matter Who Verifies Production-Derived Quality?

B. G. Innes¹ and J. E. Hobbs^2*

Abstract
Food quality attributes arising from farming methods are of increasing interest to many Canadians, examples include environmentally sustainable production practices, humane animal treatment, organic, etc. The credence nature of these attributes necessitates some form of quality assurance to provide credible signals to consumers that these attributes are present.

This paper examines trust in private, third-party, and government organizations to provide credible quality signals for attributes that derive from on-farm production methods, or “production-derived” quality attributes.

A nationwide survey reveals that farmer, third-party, and government organizations are similarly trusted to provide accurate information about farming methods, while government standards relating to environmental sustainability were perceived as most effective.

Data from a discrete choice experiment are used to explore attitudes toward pesticide-free and environmentally sustainable quality claims in a bread product, and in particular whether it matters who verifies those quality claims. Results obtained using a latent class multinomial logit model reveal a distinct pattern of heterogeneity in consumer attitudes toward production-derived quality attributes and toward the verification of those attributes. Those respondents who most value production-derived food quality also receive the highest utility from government verification and significant negative utility from supermarket or third-party verification. This segment of Canadian consumers has a clear preference for a more proactive government role in facilitating credible quality assurances for production-derived quality attributes. In contrast, the source of quality verification was far less important to those consumers holding weaker preferences for production-derived quality.


Source
Canadian Journal of Agricultural Economics (2011) 59: 87-107
DOI: 10.1111/j.1744-7976.2010.01194.x


Author Locations and Affiliations
(1) M.Sc. Graduate, Department of Bioresource Policy, Business & Economics, University of Saskatchewan, RR # 1, Embro, Ontario N0J 1J0
(2) Professor, Department of Bioresource Policy, Business & Economics, University of Saskatchewan, 51 Campus Drive, Saskatoon, Saskatchewan S7N 5A8
* Corresponding author, E-mail  jill.hobbs@usask.ca


Posted February 2011