Signaling Origin: Consumer Perceptions of Product of Canada and Made in Canada Food Labels

Abstract

ABSTRACT A Product of Canada label can be used on food if all major ingredients are grown or raised in Canada and the product is processed in a Canadian facility. A Made in Canada label is permissible when the final processing step occurs in Canada. Using survey data, we examine whether Canadian consumers understand the difference between these labels, their effectiveness as quality cues, and the relative importance of country-of-origin labels. A best-worst scaling experiment reveals a positive response to origin labels in general, and a Product of Canada label in particular. Nevertheless, few consumers understand the meaning of the labels or the difference between them. Probit regression models find little evidence of a relationship between valuing the source of ingredients or location of processing and choosing Product of Canada or Made in Canada labels. Consumers may be responding to the “Canadianness” of the labels, rather than what the labels signify.