Analysis of the factors that influence olive oil demand in the Veneto region (Italy)

Abstract

The present study analyzes the demand for extra virgin olive oil of Veneto region consumers in relation to some extrinsic characteristics of the oil, such as the place of production (with particular reference to the Veneto region), the designation of origin, the organic certification, the type of transformation (artisanal or industrial), and the cultivation of olive trees in landscapes that have preserved traditional forms, which are typically the result of irregular plantations or the reduced densities of plants per hectare of cultivated areas. To this aim, a discrete choice experiment was carried out that allowed us to identify the effect of each of the attributes on the choices of the interviewees and to highlight the presence of heterogeneity in consumer preferences. The analysis carried out highlights the presence of a strong segmentation of the extra virgin olive oil (EVOO) market in the Veneto region. In the estimated model, the heterogeneity of preferences is particularly relevant in the case of Protected Denomination of Origin (PDO) production, handicraft milling, and organic production. In contrast, the interviewees’ preferences appear to be very homogeneous for the Italian or Veneto EVOO. The results of our research confirm that the place of production is one of the most important clues considered by consumers when buying EVOO. This effect, however, appears to be less important in the areas where olive tree cultivation occupies only a reduced fraction of the cultivated area. In these situations, people tend to prioritize the consumption of EVOO from other regions where production is more widespread. Olive growing that preserves the traditional landscape appears to have a significant effect on consumer behavior, but only for some market segments.