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Abstract
In recent years, Asia has emerged as an important supplier of food to Western countries. In this study, we focus on shrimp, a major aquaculture commodity, to evaluate consumer willingness-to-pay (WTP) for enhanced food safety, use of antibiotics and eco-friendly practices used in producing shrimp in the presence of country-of-origin labelling. Specifically, this research assesses the effects of news headlines regarding product safety, as information shocks on U.S. consumer demand. Consumers were found to have a mean willingness-to-pay of $7.81 per pound of shrimp with an enhanced safety characteristic from the United States, $0.94 for the same type of shrimp from China and $2.43 for similar shrimp from Thailand. Consumers had a WTP for the absence of antibiotics in the production of U.S. shrimp of $7.31 and were only willing to pay for an eco-friendly attribute on domestically produced shrimp. Media headlines were found to have a statistically significant effect on consumer preferences and WTP for product characteristics. Food policy and international agribusiness implications of our findings are discussed.