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    International trade implications for consumer attitudes to New Zealand food attributes

    Saunders, John; Driver, Tim
    Abstract
    Price premiums for New Zealand’s exported agricultural products can be achieved through the inclusion of credence attributes. This paper aims to test the value of price premiums in international markets for agri-food products. This is achieved using partial equilibrium trade modelling (the Lincoln Trade and Environment Model (LTEM)) to evaluate the impact on producer returns from world markets. Firstly, a profile of each of the focus export markets is presented, which are used to inform the modelling exercise. The structure and coverage of the LTEM, as well as the modelling approach used to estimate the impact of consumer preferences for credence attributes, are outlined. Results show that overall the total impact of increasing the standard of any attribute from ‘minimum’ to ‘improved’ is positive for New Zealand producer returns, with the highest overall increases shown for raising ‘animal welfare/biodiversity’ attributes.... [Show full abstract]
    Keywords
    New Zealand food attributes; willingness to pay; agri-food products; credence attributes
    Fields of Research
    140201 Agricultural Economics; 140303 Economic Models and Forecasting
    Date
    2016-09
    Type
    Report (Commissioned Report)
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    • AERU Research Report series [366]
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    © Agribusiness and Economics Research Unit. Lincoln University, New Zealand, 2016. This work is licenced under the Creative Commons Attribution 3.0 New Zealand licence.Attribution 4.0 International
    Citation
    Saunders, J.T., & Driver, T. (2016). International trade implications for consumer attributes to New Zealand food attributes. AERU Research Report 340. Lincoln, New Zealand: Lincoln University Agribusiness and Economics Research Unit.
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