Abstract
German milk brands have come under significant price pressure due to the introduction of retail labels at the lower price end and of organic milk as a premium product. This analysis provides elasticity estimates by milk types and analyzes sociodemographic determinants of demand. A censored system of German household demand for organic and conventional milk, further separated into retail-label and brand milk, is estimated using a two-step procedure on data from the 2000-2003 German GfK ConsumerScan Houshold Survey. Own-price elasticities of conventional milk are around unity, but the demand for organic milk is very price-elastic. Results suggest that the price of organic milk should be considered as an important marketing instrument.
| Original language | English |
|---|---|
| Pages (from-to) | 192-206 |
| Number of pages | 15 |
| Journal | Agribusiness |
| Volume | 24 |
| Issue number | 2 |
| DOIs | |
| State | Published - 2008 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 2 Zero Hunger
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