Date of Graduation

Fall 2013

Degree

Master of Natural and Applied Science in Agriculture

Department

College of Agriculture

Committee Chair

Arbindra Rimal

Keywords

dairy, locally produced, consumer willingness-to-pay, local food systems

Subject Categories

Agriculture

Abstract

The study examines the demand for locally produced dairy products in Southwest Missouri. It is expected that consumers will be willing to pay a premium price for dairy products that are differentiated as locally produced. The data for the study were collected through interception of grocery shoppers. Additional data were collected through a survey of grocery retailers. Descriptive statistics were calculated using SPSS (Statistical Package for the Social Sciences). A two stage regression model was estimated to explore factors affecting willingness to pay a premium price for locally produced dairy. The study results show that dairy farmers are able to differentiate their products as locally produced; they can capture a larger share of the consumers' budget. Consumers that value attributes such as farm fresh, locally produced, and hormone free are more likely to pay a premium for locally produced dairy. Those consumers are likely to pay 10% or more for locally produced dairy than for traditional dairy products.

Copyright

© Kathleen Phelps

Campus Only

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