Consumer demand for pasture-raised dairy products: Results from Michigan

This paper reports the results of research that measured consumer interest in differentiated pasture-raised dairy products. Using written surveys and experimental auctions, we measured consumer beliefs about pasture-raised dairy products, likelihood of purchase, and willingness to pay premiums for these products. Study participants were generally aware of pasture-raised dairy products and most associate them with positive impacts on human health, animal welfare, and the environment. These attributes were identified as important in previous studies as well. Participants stated that, when available, they will likely choose pasture-raised products and will be willing to pay a premium for them. This market offers a niche marketing opportunity with the potential for economic growth and improved environmental outcomes with increased adoption of this model. The major limitation of this study was the lack of representative sample. Sampling methods likely reached a diverse pool of shoppers at the chosen locations and may reflect the views and behaviors of consumers of pasture-raised dairy products. However, no generalizations may be made to any other populations. Social desirability bias may have also increased the number of favorable responses. These findings suggest many future directions of research, beginning with replication of a random sample of the population as a whole. In addition, issues of seasonal production, distribution, and product development need to be addressed. Continued research into pasture management practices aimed at mitigating nutrient and sediment losses, as well as identifying ways to encourage continued adoption of pasture-based dairy production practices, will further enhance the contributions of this model to soil and water conservation goals.