Signalling Origin: Consumer Willngness to Pay for Dairy Products with the "100% Canadian Milk" Label
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In Canada, all fluid milk and cream products must be sourced from Canadian producers under the
supply management policy governing the Canadian dairy sector, while other processed dairy products,
such as cheese, yogurt, and ice cream can be made using imported milk components. Recently, the
Dairy Farmers of Canada launched a 100% Canadian Milk label for products that contain only milk
and milk ingredients produced in Canada. This paper uses a Discrete Choice Experiment from a
Canada-wide survey of dairy consumers to elicit their willingness-to-pay for ice cream carrying the
100% Canadian Milk label. The results show that Canadian consumers are willing to pay more for ice
cream products that carry the label. Consumer knowledge of the dairy sector affects their willingness
to pay for this labelling information. Implications for the use of the Canadian origin label and
suggestions for further research are discussed.