Consumer preferences for milk produced in compliance with animal welfare in Puerto Rico: Evaluating alternatives to inform the consumer

Abstract

In recent years, the dairy industry in Puerto Rico has been interested in producing milk certified in compliance with animal welfare. Nonetheless, it’s vital to examine two main issues in terms of marketing and agricultural policy. First, it’s crucial to identify the factors that affect consumer preferences for milk produced in compliance with animal welfare. Second, it’s important to understand how information on milk produced in compliance with animal welfare should be presented to consumers in a way that increases the probability of purchase. This study uses a logit regression to identify the determinants that affect preferences for milk produced in compliance with animal welfare. In addition, the study uses a multinomial logit model to examine preferences for text, logo and quick response code on the milk container. The results of the logit regression reveal that interviewees who are younger, more educated, female and have fewer dependents have a greater interest in certified milk in compliance with animal welfare. In addition, people who are usually interested in differentiated products have a greater interest in milk produced under animal welfare certification. The results of the multinomial logit model indicate that the participants prefer text and logo over the quick response code.