Consumer Preferences for Tennessee Milk

Abstract

To support dairy farmers in the state of Tennessee, in 2018 the TN Department of Agriculture instituted a “TN Milk” logo that indicates the milk is entirely sourced, processed, and bottled in Tennessee. To examine consumer preferences for this logo, TN-milk-drinking households were surveyed. The contingent valuation method was used to assess consumer willingness to pay for milk labeled as TN Milk. A probit regression with 352 observations was used to estimate the characteristics of consumers who were more likely to purchase TN Milk. Results suggest consumers would pay a 12% premium for TN Milk.