Use of auctions to assess consumer value for fresh and end-of-code milk

Economic and environmental analysis of processing plant interventions to reduce fluid milk waste

With the increased awareness about the economic and environmental impact of food waste, many interventions along food supply chains have been proposed to mitigate food waste. Even though interventions used to target food waste usually revolve around logistics and operations management, we highlight a unique solution to address this issue, specifically for fluid milk. We target the intrinsic quality of fluid milk by evaluating interventions that will extend the product shelf life. We used data from a previous fluid milk spoilage simulation model, collected price and product information from retail stores, conducted an expert elicitation, and used hedonic price regressions to determine the private and social gains to the dairy processing plant when implementing 5 different interventions to extend shelf life. Our data suggest that the value of each additional day of shelf life is approximately $0.03 and indicate that increasing periodic equipment cleaning is the most cost-effective strategy for processing plants to achieve fluid milk shelf-life improvements, both from a firm's economic standpoint and from an environmental standpoint. Importantly, the approaches reported here will be valuable to help individual firms to generate customized facility and firm specific assessments that identify the most appropriate strategies for extending the shelf life of different dairy products.

Use of auctions to assess consumer value for milk from different packaging

The objective of this study was to evaluate the effect of a sensory experience and educational message on consumer value for fluid milk in different containers: translucent high-density polyethylene (HDPE), white-pigmented HDPE (light-block), and paperboard. We carried out 11 auction sessions (n = 100). Sessions included an explanation of the experiment process; a survey about demographics and milk purchasing and consumption behaviors; a sensory evaluation; an educational message; and 3 rounds of nth price auctions. Consumers were blindly served 2 pairs of milk samples-2% milk from paperboard and translucent HDPE, and skim milk from paperboard and translucent HDPE-and asked to indicate their preference and level of acceptability for each, using a 7-point hedonic scale. Consumers were asked to ascribe a monetary value to each sample. Consumers were also asked to taste and assess a value for 2% and skim milk from light-block HDPE. All milk samples were evaluated simultaneously by a panel of 9 judges who were trained to evaluate milk quality attributes on a 15 cm unstructured line scale. All milk was from the same industry source, processed and stored on the same timeline for each session. Results from the consumer panel on acceptability, trained panel descriptive analysis and consumer bids were analyzed using multi-factor ANOVA. Subjecting responses to pre- and post-surveys to k means cluster analysis revealed 4 bidding populations in each round. Trained panelists detected higher levels of light-oxidized off-flavor in skim milk from translucent HDPE (5.8 cm) than from light-block HDPE (2.42 cm) and in 2% milk from translucent HDPE (5.1 cm) than from paperboard (0.32 cm). Although 84% of participants regularly purchased milk in plastic containers, consumers' acceptability scores for milk of the same fat content but from different packaging were not different. However, consumers gave higher acceptability scores to 2% milk from paperboard (5.2/7.0) than skim milk from paperboard (4.7/7.0). We found no differences in consumer value (US$) for 2% or skim milk in paperboard or translucent HDPE. However, after consumers received an educational message and tasted "Certified Fresh Taste" samples, they were willing to pay more for 2% milk in paperboard ($0.31 more) or HDPE ($0.38 more) packaging with a "Certified Fresh Taste" seal and for skim milk in paperboard ($0.15 more) or HDPE ($0.21 more) packaging with a "Certified Fresh Taste" seal than for milk in packaging without such labeling. Although consumers could not detect a difference in the milk from different packages, they indicated that they would pay more for a "Certified Fresh Taste" seal after hearing about the effects of light on milk in different packaging, demonstrating the importance to consumers of external cues about freshness.