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Analysis of demand for organic wine

Project


Project code: 2814OE014
Contract period: 01.11.2015 - 01.01.2018
Budget: 83,516 Euro
Purpose of research: Applied research

Consumers as well as animal rights organisations criticise repeatedly the early separation of cow in calf in modern dairy farming. Meanwhile, some dairy farms rear their calves by suckling at dam or foster cows, and studies address the effects of cow-calf contact on animal health and performance. However, until now information is lacking how milk and calves, which are produced in such systems, are market. Thus, the project aims to reveal the status quo of production and marketing of milk and calves from dam rearing systems and to gain information concerning the acceptance as well as the refusal of such products along the whole processing and market chain. At the end, ideas of marketing strategies shall be developed which will be transferred to the stakeholders of the value chain. The opinions of all stakeholders (farmers, processors, food retailers and consumers) on dam rearing are in focus of the project. Whether farmers use dam rearing as an argument in product marketing is still not well known. The amount of deliverable or processible milk is reduced by this rearing system. Therefore, farmers have to gain higher prizes for their products, like milk or calves for fattening, to be profitably. This issue will be addressed at first in the project. If possible, all German dairy farmers practicing dam rearing will be included. AftFormer studies have examined organic wine purchase behaviour through surveys and experiments. Since social desirability is an issue for the analysis of organic food purchases, these methods are prone to overestimate preferences for organic wine. Therefore, real purchase data of a sample of 30.000 households, representative for the German population has been analysed within this research project. For the first time, attitudes and actual purchase behaviour of wine buyers were analysed in combination to figure out if preferences for organic products hold true for organic wine as well. This allowed to define market segments for the development of the organic market.
The market share for organic wine was low in 2015 (5 %) and only 12 % of all German wine buyers purchased organic wine within this period. The typical organic wine buyer used organic wine prices as quality signals and payed price premiums for German and foreign organic wine, however, total wine consumption frequency was rather low in these households. Households that purchased organic wine rarely showed, however, high levels of wine consumption but payed price premiums only for German organic wine. For households that had never bought organic wine a price barrier was present: Non-buyers were highly price sensible and had lower incomes. Apparently they were not willing to pay the price premium of € 0.50/litre for organic wine.
Consumer segments with a high potential for the development of the German organic wine market were found. The segment of “Holistics” had a high preference for organic, environmentally friendly and fair products and at the same time its wine expenditure and share for organic wine were above average. The “Local-Organics” had relatively positive attitudes towards organic and local products and showed a high purchase intensity for German organic white wine. Thus, comprehensive communication about sustainability issues or local and organic wine production could lead to higher market shares. erwards, the awareness of dam rearing in dairies, cattle dealers and fattening farms will be inquired. Finally, retailers and consumers will be surveyed.

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Subjects

  • Viticulture
  • Market Analysis/Marketing Strategy
  • Business administration
  • Organic Farming
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