Download Emerging Roles for Food Labels in a Global Market

Emerging Roles for Food Labels in a Global Market
by
Shida Henneberry, Ph.D.
Professor of International Agricultural Trade
Department of Agricultural Economics
308 AG Hall
Oklahoma State University
Stillwater, Oklahoma 74078
[email protected]
Abstract
With the new wave of globalization and the rise in nontariff trade barriers, the role of labels in
marketing of agricultural-based products, has become increasingly important. This paper
provides an overview of food-labeling issues as well as a review of several types of labels used
in the U.S. and the regulatory agencies behind them. Moreover; studies analyzing willingness to
pay (WTP) for products carrying certain labels that identify specific product attributes are
examined. Existing literature shows that WTP for revealed product attributes through food
labels, vary significantly from one country to another. The more urgent needs in terms of food
availability, nutritional intake, trust in government, positive perceptions of science, and positive
media influences are among factors that differentiate consumers’ attitudes towards and WTP for
food credence characteristics across the globe. Because of the mixed consumer response to
processed-based labeling, caution is appropriate for various interest groups promoting
administrative mandates regarding food labels.
A Paper Prepared for Presentation at the 1st China Green Food Development Forum, Shanghai,
China, December 3-4, 2004
This research was funded through Hatch Project 2537 of the Oklahoma Agricultural Experiment
Station. Author wishes to thank Sudha Meiyappan, graduate assistant in the School of
International Studies at Oklahoma State University, for her collaboration in the collection of
relevant literature.
Copyright © Henneberry, 2004. All rights reserved. Readers may verbatim copies of this
document for non-commercial purposes by any means, provided that this copyright notice
appears on all such copies.