Consumer willingness to pay for premium price of eggs animal welfare in Mojokerto, East Java

Abstract

The term animal welfare is already known in Indonesia, but this technology has not been widely applied, especially in the chicken egg industry. Many factors constrain the application of animal welfare, but they are mostly hampered by the lack of knowledge about consumer perceptions of animal welfare and willingness to pay for eggs that apply animal welfare standards to their production technology. This study aimed to determine consumer perceptions of animal welfare, measure consumers' willingness to pay for eggs that apply to animal welfare and identify the determining factors. We conducted a survey of 110 egg buyers using the convenience sampling method. Most egg buyers have a positive perception of cage-free (62.7 percent), outdoor access (78.1 percent), move freely (89.1 percent), nest egg (99.1 percent), and free feeding (84.5 percent) as a form of animal welfare treatment. Our data also showed that 76.4 egg buyers were willing to pay for the egg with animal welfare attributes 20.9 percent above the regular price. Using the PLSPM (Partial Least Squares Path Modelling), it was found that animal welfare treatments positively determine the willingness to pay. Willingness to pay was also determined by animal welfare applications which can improve egg quality and consumer satisfaction. This research implies that consumers will appreciate the application of animal welfare in egg production in Indonesia if animal welfare treatment is accompanied by an increase in egg quality.