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\hypersetup{pdftitle={Consumer Willingness"=to"=Pay for Broiler Welfare in Germany: A Contingent Valuation Study},pdfauthor={Fadi Makdisi, Holger Bergmann, Rainer Marggraf},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Broiler, contingent valuation, farm animal welfare, willingness-to-pay},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
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\Large{\textbf{Consumer Willingness"=to"=Pay for Broiler Welfare in Germany: A Contingent Valuation Study\footnote{\textbf{Contact Address:} Fadi Makdisi, Georg-August-Universität Göttingen, Dept. of Agricultural Economics and Rural Development, Albrect-Thaer-Weg 8b   App: 102, 37075~Göttingen, Germany, \mbox{e-mail}: \email{fmakdis@yahoo.com}}\\[0.8ex]}}
\normalsize{\textsc{Fadi Makdisi, Holger Bergmann, Rainer Marggraf}}
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\begin{itemize*}
\item[]{\small{\textit{Georg-August-Universität Göttingen, Dept. of Agricultural Economics and Rural Development, Germany}}}
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\index[author]{Makdisi, Fadi}
\index[author]{Bergmann, Holger}
\index[author]{Marggraf, Rainer}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
Estimating the value consumers placed on farm animal welfare (FAW) is essential to provide information on the extent to which consumers are ready to support policy changes to improve the welfare of farm animals and develop animal"=friendly production systems that can compete on markets. Based on such information, consumer interest in FAW can be related to actual consumer demand for highly priced goods. This study aims at exploring consumer preferences and willingness"=to-pay (WTP) for a certified FAW product, namely the broiler meat, in Germany. The label ``certified FAW'' implies that the product has been obtained with a high respect for the welfare needs of the animals. A binominal logit model is additionally estimated to examine the factors affecting consumer decision to buy certified FAW products. The data is obtained from a survey of 300 German broiler meat consumers designed using the contingent valuation methodology (CVM). The results show that \mbox{82\,\%} of the respondents are ready to buy the certified FAW product. A majority of these (\mbox{95\,\%}) are willing to pay extra \EURtm{} 1.5 for \mbox{1\,kg} broiler fillets. This presents a price increase of about \mbox{27\,\%} in comparison with the actual conventional broiler fillets price. The WTP estimates indicate that there is a potential to improve welfare standards in broiler production. The magnitude of these estimates however shows that consumer WTP is below the actual price premium demanded for products from existing FAW programs for broiler production. This explains why the market for certified FAW broiler meat fails and calls for policy change towards higher minimum standards of broiler welfare.}

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\noindent \textbf{Keywords:} Broiler, contingent valuation, farm animal welfare, willingness"=to-pay
\index[key]{Broiler}
\index[key]{Contingent valuation}
\index[key]{Farm!animal welfare}
\index[key]{Willingness"=to-pay}
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