The Price of Happy Hens: A Hedonic Analysis of Retail Egg Prices
Submitted on Jun 15, 2011 (Original item from 2010)
Diet and Nutrition | Farmed Animals | Factory Farming | Food Trends | Food/Product Selection or Purchase Criteria | Meat, Dairy, Egg Consumption
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Short Description:
This study examines the sales and price differences between conventional, cage-free, organic, and Omega-3 eggs in the San Francisco and Dallas area markets to conclude that most shoppers are unwilling to pay high premiums for cage-free and organic eggs.
Abstract:
Article Abstract:
"This paper analyzes price differentials among conventional, cage-free, organic, and Omega-3 eggs using retail scanner data from two regional markets and the United States as a whole. Results reveal significant premiums attributable to cage-free (a 57% premium on average) and organic (an 85% premium on average). However, significant variation exists among geographic locations; price premiums for organic over conventional eggs in Dallas are almost twice as high as those in San Francisco. Estimates indicate that about 42% of the typically observed premium for cage-free eggs over conventional eggs (and 36% of the premium for organic eggs) can be attributed to egg color rather than differences in hens’ living conditions. Despite the large implicit price premiums for cage-free and organic, our data reveal that most shoppers are not willing to pay such high prices for cage-free and organic attributes."
"This paper analyzes price differentials among conventional, cage-free, organic, and Omega-3 eggs using retail scanner data from two regional markets and the United States as a whole. Results reveal significant premiums attributable to cage-free (a 57% premium on average) and organic (an 85% premium on average). However, significant variation exists among geographic locations; price premiums for organic over conventional eggs in Dallas are almost twice as high as those in San Francisco. Estimates indicate that about 42% of the typically observed premium for cage-free eggs over conventional eggs (and 36% of the premium for organic eggs) can be attributed to egg color rather than differences in hens’ living conditions. Despite the large implicit price premiums for cage-free and organic, our data reveal that most shoppers are not willing to pay such high prices for cage-free and organic attributes."
Spot Check Number:
1723
Sponsor:
Korean Rural Economics Institute, Oklahoma State University
Animal Type:
Poultry
Record Type:
Academic Paper
Research Method:
Case Study
Geographic Region:
United States Regional
Number of Participants:
Unidentified
Population Descriptors:
Egg sales data from 2004-2008
Year Conducted:
2010
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