The effects of bundling on livestock producers' valuations of environmentally friendly traits available through genomic selection

Abstract

This study estimates the willingness to pay (WTP) premiums for two novel traits available through genomic technologies in the dairy industry. Using a contingent valuation method to elicit WTP and the data from mail surveys collected from 486 Canadian dairy producers, we find a positive WTP premium for feed efficiency and a negative or zero WTP premium for reduced methane emissions. However, we observe positive valuations for reduced methane emissions if it is bundled with the feed efficiency trait. This finding suggests that the way private and public benefits of environmentally sustainable production alternatives are presented to livestock producers is critical, especially as the industry adapts to rising demand while holding an increasingly precarious position in environmental sustainability.