Impact of delivering green dairy products on farm in New Zealand

This paper aims to explore whether consumers’ willingness-to-pay (WTP) a price premium could incentivise dairy farmers to deliver products with credence attributes (CAs) in New Zealand. We first employed a meta-regression analysis to estimate WTP for CAs of dairy products, and then incorporated the WTP estimates into farm system models to estimate the economic and environmental (nitrogen and GHG losses) impacts for the farms. The results showed that price premium ranged from 5.3% to 47.5% for environmentally-friendly dairy products. The economic and environmental outcomes varied for different farm system scenarios. Findings of the study could help inform NZ farmers as to how to adjust their farm systems in response to market signals and thereby potentially gain a price premium.