Grass-Fed versus Organic Dairy Production: Southeastern US Willingness to Pay

This paper examines determinants of consumers’ willingness to pay a premium for grass-fed and organic dairy by using a survey data from the southeastern United States. We use ordered and Heckman probit regression techniques to estimate the impact of consumer characteristics on their willingness to pay premiums. The results suggest that some of relevant determinants are: age, income, gender, and geographical variables. This research has important implications for the large dairy industries in Florida and also as provides important information for the growing dairy industries in the rest of the southeastern United States