Citizens' Attitudes Towards Multifunctional Agriculture

This paper examines Finnish citizens' attitudes towards multifunctional agriculture and further, the connections among these attitudes, consumers' willingness to pay, and some socio economic factors. Attitudinal dimensions were executed by using factor analysis. The respondents (N=1300) were distributed into clusters based on their attitudes. It would be expected that people who have positive attitudes, would also state high values of WTP. Instead, this study suggests that attitudes and WTP do not have a positive relation. People are willing to support domestic agriculture as a provider of safe and high-quality food. However, a remarkable proportion of Finnish citizens have a positive attitude towards externalities and joint products of agriculture.multifunctional agriculture, agricultural prices, attitudes, Consumer/Household Economics, Q18,

DEMAND FOR CREDENCE CHARACTERISTICS IN BEEF

The recent food crises in Europe have raised public concerns about the quality and safety of food. The growing concern among the consumers towards food safety issues has increased the demand for quality attributes. Most quality properties of food products can be considered as credence characteristics, quality of which cannot be inferred before the purchase, and sometimes not even after the purchase. The aim of this study is to evaluate, both qualitatively and quantitatively, the value of new information about and the information systems set for credence characteristics of beef. Economics of information is the theoretical framework. The quantitative approach focuses to measure the ex ante value of credence characteristics, and the method of contingent valuation is applied for this purpose. In the beef supply chain there are two parallel information-based policies in Finland, which will increase the credence characteristics of beef quality and safety. First, the National Quality Strategy was drawn up by all parties involved in foodstuffs production to express the competitive advantages and strengths of Finnish food products relating to quality, safety, ethics, and ecology. Secondly, a beef identification and labelling system of the European Union was developed primarily to secure the safety of beef products and to increase the transparency and traceability of beef products in the supply chain. Through these systems more information about the credence characteristics of beef safety and quality will be made available to consumers. Results indicate that 59 % of Finnish consumers are willing to pay more to get information about safety and quality of beef products. Consumers are most concerned with diseases caused by food of animal origin. In addition, consumers desire more information about the use of GMOs in livestock production, the country of origin, and use of hormones in livestock production. Key words: beef, information, credence attributes, contingent valuation, willingness to paybeef, information, credence attributes, contingent valuation, willingness to pay, Demand and Price Analysis,

Social Benefits of Multifunctional Agriculture in Finland

This study aims at assessing the costs and benefits of multifunctional agriculture, and it is one of the very first studies using a quantitative approach to this new subject. The starting point is that if current farm subsidies are regarded as means to maintain the multifunctional characteristics of agriculture, what happens if subsidies are reduced. The effects of the decline in agricultural support on multifunctional characteristics of agriculture in Finland are estimated using the cost-benefit analysis (CBA). Only a part of the consequences can be assessed by the CBA due to lack of data on the economic value of many elements of multifunctional agriculture. Hence, the results should not be generalised too strongly, but they still provide useful information for the political decision-making. Concerning further research, we should study, inter alia, what the so-called correct level of compensation for the adequate supply of public goods would be, and what kind of means of agricultural policy are the most efficient to unambiguously enhance the multifunctional character of agriculture.multifunctional agriculture, non-market benefits, externalities, cost-benefit analysis, Finland, Institutional and Behavioral Economics,

IMPACT OF INFORMATION ON THE DEMAND FOR CREDENCE CHARACTERISTICS

Most quality properties of food products can be considered as credence characteristics, quality of which cannot be inferred before the purchase, and sometimes not even after the purchase. Our objectives are: (1) To assess how much consumers are willing to pay (WTP) for meat products, of which e.g. origins and production practices are known, especially with regard to safety issues; (2) To compare the applicability, reliability, and efficiency of safety information provided by either private companies or public institutions, and (3) to explore the possibility of the so-called information paradox: is more information always better – or more beneficial – information?Demand and Price Analysis,

Demand for and Value of Credence Characteristics: Case Beef

The aim of this study is to evaluate both qualitatively and quantitatively the value of new information about and the information systems set for credence characteristics of beef. Economics of information is our theoretical framework. The quantitative approach focuses to measure the ex ante value of credence characteristics, and the method of contingent valuation is applied for this purpose. Results indicate that 59 % of Finnish consumers are willing to pay more to get information about safety and quality of beef products. Consumers are most concerned with diseases caused by food of animal origin. Genetically modified organisms (GMOs) are not considered as the mosthazardous risk factor in food products. However, if the beef products contain GMOs used in animals, then consumers also start requiring additional information.beef, information, credence attributes, contingent valuation, willingness to pay, Food Consumption/Nutrition/Food Safety,

Consumer Preferences Regarding Multifunctional Agriculture

Multifunctionality is one of the key issues and concepts in European agriculture and in the common agricultural policy. Its importance is further emphasized in the context of the WTO negotiations. Stronger emphasis on multifunctionality will also have significant impacts on the food and agribusiness sector. Yet, so far consumers' views on multifunctionality have mostly been neglected in both policy planning and research. This paper presents one of the first major surveys on consumers' attitudes towards and willingness to pay for multifunctional agriculture. The study is based on a modern computer aided interviewing system and the contingent valuation method was employed to find out the WTP.Consumer/Household Economics,

Finnish Citizens' Attitudes towards Multifunctional Agriculture

This paper examines Finnish citizens' attitudes towards multifunctional agriculture and further, the connections among these attitudes, consumers' willingness to pay, and some socio economic factors. Attitudinal dimensions were executed by using factor analysis. The respondents (N=1300) were distributed into clusters based on their attitudes. It would be expected that people who have positive attitudes, would also state high values of WTP. Instead, this study suggests that attitudes and open-ended WTP do not have a positive relation. People are willing to support domestic agriculture as a provider of safe and high-quality food. However, a remarkable proportion of Finnish citizens have a positive attitude towards externalities and joint products of agriculture. The emphasised multifunctionality characteristics can have important implications on agribusiness firms in terms of e.g. plant location decisions, and on the WTO negotiations with regard to the anticipated removal of export subsidies.Agricultural policies, consumers, public goods, WTP, Agricultural and Food Policy, Consumer/Household Economics,

Consumers' Willingness to Pay for Additional Information on Food Quality and Safety

Most quality properties of food products can be considered as credence characteristics, quality of which cannot be inferred before the purchase, and sometimes not even after the purchase. Our objective is to assess how much consumers are willing to pay (WTP) for meat products, of which e.g. origins and production practices are known, especially with regard to safety issues. Results indicate that 59 % of Finnish consumers are willing to pay more to get information about safety and quality of beef products. Consumers are most concerned with diseases caused by food of animal origin.beef, information, credence attributes, willingness to pay, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

Multifunctional Policy Measures: Farmers' Choice

The elements of multifunctional agriculture are strongly related to national, regional and local conditions. This indicates that it is hard to find common measures, which could efficiently enhance multifunctionality in different areas with different agricultural conditions. In order to really enhance the multifunctional role of agriculture, there is a need for newly designed measures. A need exists to have information from the groups involved in agricultural policy. To respond to this need we apply the stated choice method to find out, which measures Finnish farmers prefer when the measures introduced include multifunctionality enhancing elements. We introduced to farmers 12 different measures involving different levels of targeting, contracting and monetary compensation. We estimated a multinomial logit model to explain farmers' first choice with respect to policy options introduced. The results show that farmers are willing to accept multifunctionality enhancing elements and complementary terms of support as a basis for agricultural policy. To ensure the fulfilment of these terms a need exists for a large enough compensation. In practice, this compensation needs to cover all the costs for farmers of fulfilling the terms introduced in any particular support scheme.agricultural policy, stated choice method, Finland, Agricultural and Food Policy, Q18,

Policies and Measures for Multifunctional Agriculture: Experts' Insight

Multifunctionality of agriculture is with the growing importance in agricultural policies. The main argument behind multifunctionality is that agricultural production and thus, the whole agricultural sector has multiple roles, not just to produce food and fiber, but also to provide several non-market commodities. Although agricultural policies in Europe set more and more emphasis on the importance of these non-commodity outputs it is hard to find policy measures designed directly for multifunctionality. The aim of our study is to find out actual and preferred policy measures in order to improve and/or to maintain the multifunctional role of agriculture. We have interviewed 24 Finnish experts about multifunctional agriculture and agricultural policy related issues, by using applied policy Delphi method. The results show, that a wider role of agriculture is highly acknowledged among Finnish experts. However, in its broadest definition, no undivided acceptance for the concept of multifunctionality was found. The policy measures part gives evidence that also the current policy measures included in the EU's Common Agricultural Policy have elements that improve multifunctionality, especially those in the agri-environmental support scheme. Yet, there is a need for targeted measures based on different national, regional and local agricultural conditions. In addition, the implementation of these measures needs more cooperation between different sector policies as well as among the different operators in the whole supply chain.Multifunctional agriculture, Agricultural policies, Policy Delphi, Finland, Agricultural and Food Policy,