Date of Graduation
Master of Natural and Applied Science in Agriculture
College of Agriculture
dairy, locally produced, consumer willingness-to-pay, local food systems
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.
© Kathleen Phelps
Phelps, Kathleen, "Consumer Willingness to Pay for Locally Produced Dairy in Southwest Missouri" (2013). MSU Graduate Theses. 2684.