The Market for Coffee: An Analysis of the Effects of Sustainability Labels on Consumers' Choice and U.S. Import Demand

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Description
Demand for specialty coffee worldwide is increasing, yet producers primarily located in developing countries struggle to cover their production costs and sustain their livelihood. Coffee producers are globally seeking higher profits by adapting their conventional production practices to be more

Demand for specialty coffee worldwide is increasing, yet producers primarily located in developing countries struggle to cover their production costs and sustain their livelihood. Coffee producers are globally seeking higher profits by adapting their conventional production practices to be more socially and environmentally responsible. This dissertation aims to analyze the U.S. import demand for coffee and investigate consumer preferences and willingness to pay for coffee labels representing sustainability efforts. Chapter one introduces the coffee industry and the three chapters of this research. In the second chapter, I analyze the influence of consumers' values and the warm glow effect of giving on their willingness to pay for sustainable coffee using a non-hypothetical auction mechanism. I use an information treatment to test the effect of information on consumers' willingness to pay. Providing information increases the premium consumers are willing to pay for sustainable coffee. Regarding values, consumers that like coffee and experience the warm glow of giving are willing to pay a premium for coffee with a sustainability label. Using a hypothetical online choice experiment, in the third chapter, I investigate coffee consumers' preferences and willingness to pay for Fair Trade, Direct Trade, Rainforest Alliance and USDA Organic coffee. I find that consumers value sustainability labels that aim to solve social issues more than those whose primary goal is to solve environmental problems. I find that when two labels are together on a coffee bag, there is no effect on consumers’ utility. However, there is a positive effect on consumers' willingness to pay for coffee labeled simultaneously for Fair Trade and Organic, and simultaneously for Direct Trade and Organic. In the fourth chapter, I estimate coffee price elasticities between major coffee exporters to the U.S. and calculate pass-through import cost using a system-wide differential demand system. I compare imports of arabica and robusta green coffee and estimate the degree to which they complement each other or substitute one another. I find that arabica and robusta from Brazil, Colombia, and Mexico are substitutes but some exceptions show a complementary relationship. The inclusion of the exchange rate into the demand system has a significant effect on U.S. coffee demand. I find an incomplete pass-through cost of the exchange rate to U.S. import prices. Chapter six concludes by summarizing the results of this dissertation and discussing the future challenges for the coffee industry.
Date Created
2022
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Decision-Making in the Livestock Supply Chain

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Description
Decision-making is critical in the livestock supply chain. Understanding how producers and consumers make their decisions requires a sufficient understanding of the process of their decision-making behavior. Based on the processing resources, consumers or producers’ choices could be affected by

Decision-making is critical in the livestock supply chain. Understanding how producers and consumers make their decisions requires a sufficient understanding of the process of their decision-making behavior. Based on the processing resources, consumers or producers’ choices could be affected by different processes: affective process, cognitive process or both affective and cognitive processes simultaneously. Applying a variety of experiment methods, this dissertation investigates how producers and consumers make their choices by exploring how the product attributes, and the characteristics of the decision-maker, affect consumers and producers’ choice-making behaviors. In the first essay, I implemented a discrete choice experiment and estimated random parameter logit models with error component to analyze Chinese consumer willingness to pay (WTP) for domestic and imported beef flank labeled with the new quality grades and other relevant beef labels. Results suggest foreign beef producers could compete most closely with domestic beef if it was labeled as premium quality. In the second essay, I investigate Chinese consumer WTP for beef from different countries and the role of ethnocentrism, country image, and product image on the WTP. Results suggest that foreign beef exporters could promote their beef in China by advertising in accordance with positive country and product images. In the third essay, I attempt to determine hog farmers’ motivations to adopt genomics for breeding hogs that are more resistant to the disease. In doing so I focus on the impact of their risk preferences and related peer effects that might influence potential adoption. This case study provides implications for local governments and companies trying to promote new technologies. In the fourth essay, I investigate how social influence affects producers’ behavior under disease outbreak using social network analysis. In particular, I focus on how information flows during an epidemic such as African Swine Fever. Findings provide insights into how information flows and how actors communicate during a situation of crisis. This can be used by stakeholders (1) to disseminate information; and (2) to avoid the spread of rumors and false information.
Date Created
2022
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Managerial Factors in Effective Workplace Communication: Analyzing the effects of Tailoring Communication Styles and Verbalizing Expectations in the Workplace

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Description
This project analyzes the large array of managerial leadership research in congruence with the wide field of workplace communication to attempt to determine the importance of refining communication channels between managers and employees as well as articulate the core competencies

This project analyzes the large array of managerial leadership research in congruence with the wide field of workplace communication to attempt to determine the importance of refining communication channels between managers and employees as well as articulate the core competencies a manager should exhibit when practicing exemplary communication in their respective work environment. The preliminary sections of this thesis will establish the currently existing foundations utilized and narrow the wide range of research available to applicable information regarding positive workplace communication, influencing factors in a feedback loop from the employee’s perspective, as well as leadership aspects and actions a manager can alter or initiate to improve their workplace’s environment through communicational refinement. This research is supplemented with a survey that was administered to Arizona State University student leaders who were involved in coordinating the Regional Business Conference on the Polytechnic campus. The survey data is designed to either confirm or contradict the findings of the literature. The objective of this project is to synthesize an overview of a manager’s responsibilities and recommend actions to tailor and improve workplace communication
Date Created
2020-05
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Consumer Demand for Local Food from Direct-to-Consumer versus Intermediated Marketing Channels

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Description
Consumers can purchase local food through intermediated marketing channels, such as grocery stores, or through direct-to-consumer marketing channels, for instance, farmers markets. While the number of farms that utilize direct-to-consumer outlets keeps increasing, the direct-to-consumer sales remain lower than intermediated

Consumers can purchase local food through intermediated marketing channels, such as grocery stores, or through direct-to-consumer marketing channels, for instance, farmers markets. While the number of farms that utilize direct-to-consumer outlets keeps increasing, the direct-to-consumer sales remain lower than intermediated sales. If consumers prefer to purchase local food through intermediated channels, then policies designed to support direct channels may be misguided. Using a variety of experiments, this dissertation investigates consumer preferences for local food and their demand differentiated by marketing channel. In the first essay, I examine the existing literature on consumer preferences for local food by applying meta-regression analysis to a set of eligible research papers. My analysis provides evidence of statistically significant willingness to pay for local food products. Moreover, I find that a methodological approach and study-specific characteristics have a significant influence on the reported estimates for local attribute. By separating the demand for local from the demand for a particular channel, the second essay attempts to disentangle consumers’ preferences for marketing channels and the local-attribute in their food purchases. Using an online choice experiment, I find that consumers are willing to pay a premium for local food. However, they are not willing to pay premiums for local food that is sold at farmers markets relative to supermarkets. Therefore, in the third essay I seek to explain the rise in intermediated local by investigating local food shopping behavior. I develop a model of channel-selection in a nested context and apply it to the primary data gathered through an online food diary. I find that, while some consumers enjoy shopping at farmers markets to meet their objectives, such as socialization with farmers, the majority of consumers buy local food from supermarkets because they offer convenient settings where a variety of products can be bought as one basket. My overall results suggest that, if the goal is to increase the sales of local food, regardless of the channel, then existing supply-chain relationships in the local food channel appear to be performing well.
Date Created
2018
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Working towards Garden of Eden: Developing practical solutions to combat food insecurity in food deserts

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Description
Food deserts and food insecurity can negatively impact the health of communities. Urban farming, specifically with aeroponics systems, could be a possible solution in alleviating food insecurity in food deserts. In order to test and understand what type of system

Food deserts and food insecurity can negatively impact the health of communities. Urban farming, specifically with aeroponics systems, could be a possible solution in alleviating food insecurity in food deserts. In order to test and understand what type of system and products work best in such areas, this thesis looks at urban farming from farms' and consumers' perspective using qualitative and quantitative data. The qualitative data was collected from current businesses that are using urban farming techniques within the Phoenix valley. Based on the quantitative research, the consumers studied seemed willing to eat leafy greens and vegetables given that they are affordable, fresh, and they understand how to cook them. Further research could be a more focused study on residents of specific neighborhoods that are classified as food deserts. Another aspect that could be researched further is the other factors affecting the health of residents located in food deserts other than the availability of food. This could include, but is not limited to, lack of nutritional education, insufficient cooking materials, and personal food preferences.
Date Created
2018-05
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It's All In the Genes: Designing and Administering a Brief Survey to Local Dairymen In Order to Gauge their Interest In Genomics

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Description
One of the newest technologies available for agricultural use is the sequencing of the bovine genome and the identification of specific genes that would ensure favorable physical traits in the herd. An easy way for this technology to be utilized

One of the newest technologies available for agricultural use is the sequencing of the bovine genome and the identification of specific genes that would ensure favorable physical traits in the herd. An easy way for this technology to be utilized is in the milking herds of dairies, the herd has already been bred for specific traits and any change due to a genomic influence would be easily seen. Dairy cattle are commonly bred through artificial insemination, and this would be a perfect place for the genomic programs to prove themselves. In order to determine the attitudes of local dairymen toward genomics, I designed and administered a survey to gauge their opinions. The survey was given to a meeting of the United Dairymen of Arizona at their Tempe offices. The survey covered the current breeding methods used by the dairies, the desired attributes in a milking herd and a breeding program, and a place for the dairymen to give their own opinions on genomics. The results indicated that the dairymen are interested of using genomics, but they are unsure of the cost. Dairymen are often looking for new methods to increase their milk production and herd value, but are reluctant to pay a high amount. One recommendation is for these dairymen to utilize bulls that have had their genome analyzed when they are breeding their cows. This would allow the dairymen to see the effects and benefits of genomics on their herd without the dairymen having to front the large start up cost for their own genomic program.
Date Created
2016-05
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The Initial Feasibility of a Small Hydroponic Farm Startup in Austin, Texas

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Description
This thesis will examine market research relating to consumer food trends and the business environment of Austin, Texas in order to evaluate the initial feasibility of establishing a small hydroponic produce farm. A main concern of this report is to

This thesis will examine market research relating to consumer food trends and the business environment of Austin, Texas in order to evaluate the initial feasibility of establishing a small hydroponic produce farm. A main concern of this report is to provide a general overview of hydroponics and its potential advantages over traditional farming methods as a technique for producing food products for consumers in a local setting. To explore the potential of establishing such a venture, this report will also include a partial business plan focusing on the marketing strategy of initiating a hydroponic produce farm in Austin.
Date Created
2015-05
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Three Essays on Demand Systems Estimation For Agricultural and Natural Resource Economics

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Description
Three demand systems were estimated to examine demand sensitivity and welfare changes for each commodity under study. In the first essay, a Quadratic Almost Ideal Demand System (QUAIDS) was used to examine the effect of the Fukushima Daichi nuclear disaster

Three demand systems were estimated to examine demand sensitivity and welfare changes for each commodity under study. In the first essay, a Quadratic Almost Ideal Demand System (QUAIDS) was used to examine the effect of the Fukushima Daichi nuclear disaster on the demand for imported pelagic fish in the domestic Japanese market. The effect of the Fukushima Daichi nuclear disaster was measured using changes in demand after the disaster as well as measures of changes in social welfare changes caused by the disaster. A significant effect of the disaster on demand sensitivity measures was found, but no significant changes in welfare. In the second essay, a differential demand system examined the effect of exchange rate fluctuations on the demand for fresh tomatoes in the U.S. Market. It was found that the U.S. Dollar-Mexican Peso exchange rate had a significant positive effect on the demand for Mexican fresh tomatoes. In the third essay, a Hurdle Negative Binomial demand system was estimated for recreational trips to the Boundary Waters Canoe Area Wilderness. This model was estimated using Bayesian methods to obtain parameter estimates that could not be obtained by maximum likelihood. The parameters were used to calculate recreational welfare measures for trips to seventy-two entry points.
Date Created
2017
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Analysis of the United States' sugar Industry

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Description
Unrestricted Mexican exports of sugar into the U.S. is considered the most pressing issue facing the U.S. sugar industry. The goal of this dissertation is to analyze the trade of sugar between Mexico and the U.S. as well as analyze

Unrestricted Mexican exports of sugar into the U.S. is considered the most pressing issue facing the U.S. sugar industry. The goal of this dissertation is to analyze the trade of sugar between Mexico and the U.S. as well as analyze additional primary issues confronting the U.S. sugar industry. Chapters 1 and 2 provide an introduction to the U.S. sugar industry. Chapters 3 through 6 develop trade models which analyze sugar trade between Mexico and the U.S. The trade models estimate how NAFTA, USDA sugar forecast errors and Mexican ownership of twenty percent of the Mexican sugar industry each impact U.S. producer surplus and Mexican welfare. Results validate that U.S. producer surplus and in some instances Mexican welfare were decreased by full implementation of NAFTA. U.S. producer surplus and Mexican welfare were decreased due to USDA sugar production forecasting errors. U.S. producer surplus would be increased if the Mexican government did not own twenty percent of Mexican sugar production. Using an online choice experiment, Chapter 7 assesses U.S. consumers' preferences and willingness to pay (WTP) for imported and genetically modified (GM) labeled sugar and sugar in soft drinks. Results indicate that consumers prefer bags of sugar and soft drinks labeled as "Not GM". Furthermore, consumers prefer sugar from Canada and the U.S. over sugar from Mexico, Brazil and the Philippines. Evidence is also provided that participants are more likely to choose actual products in the choice set rather than the "none of these" options when controlling for hypothetical bias by using consequentiality techniques. A non-hypothetical experimental auction was used in Chapter 8 to determine consumers' WTP for soft drinks labeled with sweetener and calorie information and analyzed the role of taste panels in an experimental auction. Results indicate that sugar is consumers' most preferred sweetener and calorie labeling is ineffective at influencing consumers to choose healthier soft drinks. Including taste in an experimental auction caused significant reductions in consumers' WTP for all soft drinks. Chapter 9 concludes by summarizing the results of this dissertation and discussing the future challenges facing the U.S. sugar industry.
Date Created
2014
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Economic analysis of implementing electronic traceability system for fresh produce importers

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Description
The global demand and trade for fruits and vegetables is increasing at national and international levels. The fresh fruits and vegetables supply chain are highly vulnerable to contamination and can be easily spoiled due to their perishable nature. Due to

The global demand and trade for fruits and vegetables is increasing at national and international levels. The fresh fruits and vegetables supply chain are highly vulnerable to contamination and can be easily spoiled due to their perishable nature. Due to increases in fresh fruit and vegetable trade shipment volume between countries, the fresh food supply chain area is the highly susceptible and frequently prone to food contamination. The inability of firms in the fresh food business to have a good supply chain visibility and tracking system is one of the prominent reasons for food safety failure. Therefore, in order to avoid food safety risk and to supply safe food to consumers, the firms need to have an efficient traceability system in their supply chain. Most of the research in the food supply chain area suggests the implementation of a highly efficient tracking system called RFID (Radio frequency identification) technology to firms in the food industry. The medium scale firms in the fresh food supply chain business are skeptical about implementing the RFID technology equipped traceability system due to its high cost of investment and low margins on fresh food sales. This research developed two methods to measure the probability of food safety risk in food supply chain. These methods use the information gain from RFID traceability systems as a tool to measure the amount of risk in the fresh food supply chain. The stochastic optimization model is applied in this study to determine the risk premium by investing in RFID technology over the electronic barcode traceability system. The results show that there is a reduction in buyer (Type II error) and seller risk (Type I error) for RFID technology employed traceability system compared to electronic barcode system. It is found from stochastic optimization results that there is a positive risk premium by investing in RFID traceability system over the current systems and suggests the implementation of RFID traceability system for complex medium scale fresh produce imports to reduce the food safety risks. This research encourages the food industries and government agencies to evaluate alternatives to update supply chain system with RFID technology.
Date Created
2011
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