Export Performance and Innovation Activities in the Agrifood Industry: A Recursive Estimation Approach

Agrifood firms operate in a more global, saturated and competitive market than other manufacturing firms, and they have smaller size. These firms certainly need to define appropriate strategies related to accessing the international market and to investing in innovative activities. This two decisions are related to firms size because as Krugman states international trade is not only explained by differences in technology between countries but also by firms' desire to extend their sales in foreign markets to take advantage of the economies of scales. Therefore, it seems to exist a simultaneous relation between firm size, exports and innovative activities. The aim of this paper is to analyse agrifood firms' decisions on these three strategies: export behaviour, innovative activities and firm's size in comparison to other manufacturing firms using some modification from the simultaneous model defined by Entorf and Pohlmeier. The study is focused on the Spanish manufactured firms taking special attention to the agri-food ones. Data come from a National Survey ("Encuesta de Estrategias Empresariales") carried out by the "Fundacion Empresa Publica") from 1990. Results indicate that agri-food manufacturing firms decision process related to their size, export share and innovative activities is not a simultaneous process. Moreover, some differences with the rest of manufactured firms have been detected, In particular, agri-food firms have lower export shares, lower size and lower innovation intensity than Spanish firms in other manufacturing sectors. Spanish firms decision process on strategic variables (size, export share and innovation) is characterized by a recursive decision process where firms firstly decide export intensity, secondly, they decide their size or total sales depending on the previous decision and, finally, they decide their innovative intensity depending on the last two.Agribusiness,

Attitudes of Retailers and Consumers toward the EU Traceability and Labeling System for Beef

The spread of bovine spongiform encephalopathy (BSE) in Europe has induced EU policy makers to implement a mandatory traceability and labeling system in the beef supply chain. This paper analyzes consumer and retailer attitudes toward this system. Data used in the study were collected through two surveys of consumers and retailers in the province of Aragón, Spain, in 2002. Consumer and retailer attitudes toward beef traceability are examined to identify main underlying factors. Using these factors, consumers and retailers are segmented into homogenous groups according to their attitudes toward traceability for beef. Results indicate that both consumers and retailers highly value the positive aspects related to the traceability and labeling system for beef, and they value the possible disadvantages to a lesser extent.Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

Co-operation and economic relationship as determinants for competitiveness in the food sector: the Spanish wheat to bread chain

The objective of the paper is to investigate the impact of co-operation amongst stakeholders of the food chain on enterprise competitiveness. The analysis focuses on the Spanish wheat to bread chain. A theoretical model is developed which covers the main components that define competitiveness (profitability, turnover, market share, customer loyalty and product quality), quality supply chain relationship (trust, commitment and satisfaction) and the main factors explaining supply chain relationship (i.e. quality and frequency of the communication, personal bounds, etc.). The Spanish wheat to bread supply chain has been chosen to empirically test the model. This sector is very fragmented all along the chain, with a high number of wheat farmers, millers and bakers. Exchanges in the sector are mainly done in the open market but there is an increasing tendency to maintain stable relationships with suppliers to assure quality. Therefore, stakeholders in the wheat to bread chain are mainly using two types of economic relationships: “repeated market transactions” and “spot market” but the former is by far the most used. Based on data from a standardised survey with farmers, processors and retailers a structural equation modelling approach has been applied to empirically test the influence of relationship quality on stakeholders’ competitiveness in the Spanish wheat to bread chain. The main conclusion of the study is that, as the quality of the relationship in the Spanish wheat to bread chain improves the stakeholder’ competitiveness increases. The results also reveal that quality of the relationship in the Spanish wheat to bread chain is based on trust, satisfaction and commitment with buyers/sellers and strongly influenced by communication quality and quantity. In addition, the outcome shows that the quality of communication has an indirect positive effect on stakeholders’ competitiveness through the relationship quality. Finally, the only factor that will influence the quality of the relationship is the equal power distribution along the chain. Moreover, personal bounds positively influence the quality of communication in the bread Spanish supply chain.competitiveness, food, Spain, Agribusiness,

The role of information on consumers’ preferences for locally produced apples in traditional rural areas

Fresh fruits cultivated in traditional areas are gaining consumers’ interest due to environmental and social benefits, and most importantly, the sensory characteristics (taste, texture) they possess. This research focused on two apple varieties “Golden”, and “Reineta” produced in the region of Aragón along the “Ebro River” and in a rural hilly area “Manubles”, which has a long tradition on apple production. We measure consumers’ valuation of apples produced in this rural area through a choice experiment with two treatments. In treatment A, consumers chose based on the information provided (rural area and cultivation characteristics), and then inspected and tasted the apples (as in a real purchase). In treatment B, consumers first visually inspected and tasted the apples and then chose the most preferred alternative. Results showed that consumers were willing to pay higher prices for the “Golden” than the “Reineta” variety, especially when experiencing taste before choice (Treatment B). Conversely, higher premiums were paid when the apples were presented with the rural area (Manubles) and cultivation information first, and then were tasted (Treatment A). These results highlight the importance of using sensory analysis in choice experiments and reveal that product information might increase consumers’ expectations, which may change after taste

Do market prices correspond with consumer demands? Combining market valuation and consumer utility for extra virgin olive oil quality attributes in a traditional producing country

The objective of this research is to examine whether there is a relationship between the value of attributes based on the market price and on consumer utilities. To address this objective, the results from a hedonic price (HP) approach are combined with the actual consumer utilities from a real choice experiment (RCE) for extra virgin olive oil (EVOO) attributes. The results indicate that the origin of production attribute positively influences consumer utility and it is also positively related to market EVOO prices. Conversely, the PDO quality certification positively influences consumer utility and willingness to pay, although it is not related to EVOO prices in the real market

When more is less: the effect of multiple health and nutritional labels in food product choice

Consumers are facing increasing information on health and nutritional aspects of foods, an important source of which is that presented in food packages. Prior research has identified that this information is positively valued, but the effect of multiple information items simultaneously is not so well understood. A choice experiment has been conducted to identify the effect of multiple health and nutrition information sources in two products which represent both a healthy and less-healthy food (pork Frankfurt sausages and plain yoghurt respectively). Results show that although highly heterogeneous, preferences seem to positively value individual information items and negatively value the presence of more than one item, specially if the item is a health claim. Premiums consumers are willing to pay represent a significant percentage of retail price, specially for the less healthy food product which also faces lower retails prices.Nutritional information, nutritional claims, health claims, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

IDENTIFYING CONSUMER VALUATION PATTERNS OF ALTERNATIVE NUTRITION AND HEALTH LABELS COMBINATIONS: EVIDENCE FROM SPAIN

The provision of nutrition and health information on food labels is increasing as an industry and regulation answer to the growing consumer concern with diet-health relationships. Prior research has shown that the presence of this information on food labels is valued by consumers; however there is still no clear pattern on which labelling options are more valued and how different consumers value the different options. This paper analyses the results of a choice experiment conducted to identify the effect of multiple health and nutrition information sources on consumer food choice, taking into account preference heterogeneity using a latent class approach. Results show that different consumer groups can be identified with clearly distinguishable valuation and behavioural patterns. A minority of consumers attaches high WTP to the provision of additional information in the nutrition facts panel, however this is not show for a vast majority who value claims. Moreover, not taking into account this preference heterogeneity can lead to policies that do not maximize consumer welfare. Based on the characteristics of consumers identified in each group, recommendations are made as to how both industry and public administration can move forward with the development of nutritional labelling guidelines or policies.Nutrition facts panel, latent class, choice experiments, consumer, interactions, health claims, nutrition claims, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy,

MARKET SEGMENTATION AND WILLINGNESS TO PAY FOR ORGANIC PRODUCTS IN SPAIN

In recent years, consumer concerns on environmental and health issues related to food products have increased and, as a result, the demand for organically grown production has grown. Higher costs of production and retailer margins generate a gap between real prices and those that consumers are willing to pay for organic food. In this article, consumer willingness to pay for organic food in two Spanish regions is analyzed. Markets in both regions are segmented considering consumers lifestyles. Results indicate that consumers concerned about healthy diet and environmental degradation are the most likely to buy organic food, and are willing to pay a high premium. Organic attributes are easily identified in perishable products as the premium consumers would pay for organic meat, fruits, and vegetables is higher.Demand and Price Analysis,

Short communication: Consumer’s willingness to pay for indigenous meat products: The case of a Spanish sheep breed

European farmers of indigenous local breeds have benefited from European Union economic support in the past and it is forecast to continue being supported in the future. However, it is in the public debate that economic support cannot last forever. Then, for the long-run maintenance of indigenous local breeds to be possible, the derived meat products from these breeds should be demanded by consumers or at least by a group of local consumers. This is the aim of this paper, to study consumers’ demand for indigenous local meat products. In particular, to assess how much consumers are willing to pay for a Spanish lamb meat from an indigenous sheep breed (“Ojinegra de Teruel”). To do that, a non-hypothetical experimental auction with local consumers (those living in a medium-size town around 150 km from the producing area of this meat) was used. Results indicated that consumers were willing to pay, on average, €0.45 (15% of the market price) more for the lamb meat with the “Ojinegra de Teruel” breed claim than for the one without breed indication (as it is now sold in the market). Then, local consumers clearly accept the differentiated meat through the indigenous breed indication. Then, producers in the area could have more opportunities to sell in the local market if they differentiate their meat using the indigenous “Ojinegra de Teruel” claim than using the undifferentiated strategy they are undertaken now

Do Consumers Pay Attention to the Organic Label When Shopping Organic Food in Italy?

Medical imagin