Consumers’ preferences and willingness to pay for safety and quality attributes in milk: Evidence from a discrete choice experiment

With rising household incomes and increasing health awareness, consumers are exhibiting a growing preference for quality food with safety attributes. However, the extent to which consumers value food safety and quality attributes and how relevant information influences their purchasing behaviour has not been widely evaluated, particularly in developing countries such as Nepal. This study aims to analyse the preferences, willingness to pay and relative importance of various safety and quality attributes for making choice decisions among Nepalese milk consumers. This study employed a discrete choice experiment, which involved 401 participants in Kathmandu. A multinomial logit model, random parameter logit model and latent class model were utilised to examine preference heterogeneity, focusing on five key attributes: place of production, good manufacturing practices labelling, fat content, packaging material and price. The results indicated that all five attributes were significant in informing participants' purchase decisions. Consumers demonstrated a marked preference for good manufacturing practices labelled milk, with a willingness to pay a 42.78 % premium relative to conventional milk. Additionally, consumers expressed a positive valuation for domestically produced milk and milk packaged in plastic jars. We identified two distinct consumer segments, "Food safety-conscious consumers" and "Budget-conscious consumers". This study provides strong empirical evidence of the evolving preferences of Nepalese milk consumers towards food safety and quality attributes. In response to these evolving consumer demands, policymakers and dairy industry stakeholders should prioritise the production of milk that is safe, high in quality, and securely packaged, while also ensuring transparent and credible communication to build consumer trust.