International Honey Laundering and Consumer Willingness to Pay a Premium for Local Honey: An Experimental Study

16 Pages Posted: 28 Apr 2020

See all articles by Chian Jones Ritten

Chian Jones Ritten

University of Wyoming

Linda Thunström

The Swedish Retail Institute

Mariah Ehmke

affiliation not provided to SSRN

Jenny Beiermann

affiliation not provided to SSRN

Donald McLeod

affiliation not provided to SSRN

Date Written: October 2019

Abstract

Fraudulent activities in the international honey market affect 10% of food, and cost the global food market $50 billion per annum. Although many developed countries have created regulations to combat food fraud, illegally imported honey, especially originating from China, still enters through transshipments and relabelling to mask its true origin. This honey laundering poses a health risk to consumers, as Chinese honey potentially contains illegal and unsafe antibiotics and high levels of herbicides and pesticides. We analyse whether information about the negative health impacts of laundered honey increases the proportion of consumers willing to pay a premium for local fraud‐free honey. Using a laboratory experiment, we find when consumers are given honey laundering information, their willingness to pay a premium for local fraud‐free honey increases by as much as 27 percentage points. Our findings suggest that by conveying honey laundering information and guaranteeing their honey is fraud‐free, producers can potentially increase revenues and reduce the prevalence of food fraud. Our results further show that consumers' preference for various honey characteristics and age also influence the probability of paying a premium for local honey.

Keywords: food fraud, honey laundering, international honey markets, trade diversion

Suggested Citation

Jones Ritten, Chian and Thunström, Linda and Ehmke, Mariah and Beiermann, Jenny and McLeod, Donald, International Honey Laundering and Consumer Willingness to Pay a Premium for Local Honey: An Experimental Study (October 2019). Australian Journal of Agricultural and Resource Economics, Vol. 63, Issue 4, pp. 726-741, 2019, Available at SSRN: https://ssrn.com/abstract=3586833 or http://dx.doi.org/10.1111/1467-8489.12325

Chian Jones Ritten (Contact Author)

University of Wyoming ( email )

Box 3434 University Station
Laramie, WY 82070
United States

Linda Thunström

The Swedish Retail Institute ( email )

Regeringsgatan 60
103 29 Stockholm
Sweden

Mariah Ehmke

affiliation not provided to SSRN

No Address Available

Jenny Beiermann

affiliation not provided to SSRN

No Address Available

Donald McLeod

affiliation not provided to SSRN

No Address Available

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