Analysis of consumers' attitudes toward traceability system on dairy products in China

Abstract

Dairy industry has a large potential in China. However, recent food safety problems occurred in the livestock sector in China has somehow negatively affected consumer's confidence in food purchase. A traceability system can be one of the ways to provide consumers information about the food they purchase. In this research, consumers' attitudes toward traceability system are examined. A choice modeling technique is the tool to examine what kinds of information are significant determinants on the value people place on non-market goods i.e. traceability label on dairy products. A conditional logit model is used to analyze the data. In conclusion, a traceability system is not familiar with many consumers in China. However, most of the consumers would like to accept traceability system and were willing to pay extra money for milk with a traceability system. The consumers are concerned on the information of animal medicine usage record especially on antibiotic and willing to pay more for receiving the information. Providing this information may increase consumers' confidence on the food they consume. A traceability system could be a way to provide information of production and avoid information asymmetry, and help consumers to rebuild the confidence.