Target groups for organic wine: The importance of segmentation analysis

In light of low and stagnating market shares of organic wine, there is an ongoing debate about growth potential for organic wine. A recent study revealed that even consumers of organic food did not necessarily purchase organic wine regularly. The aim of this contribution was to analyse the wine preferences of organic food consumers and identify promising new target groups for organic wine. We conducted choice experiments in Germany (N = 600) and analysed the data with mixed logit models and latent class models, revealing interesting differences between the results of the two approaches. While the mixed logit models suggested ‘organic’ was the most important wine attribute, the latent class models challenged this proposition. While three of four consumer segments had a strong preference for organic, only one segment in the red wine model (and no segment in the white wine model) gave organic highest priority. Just like non-organic consumers, many organic food consumers seem to use price or country of origin as the most important quality cue for wine. The comparison between the results of the choice experiments and the participants’ stated normal purchase behaviour suggested there is growth potential for organic wine. Apparently, consumers of organic food would buy more organic wine if their preferred type and variety of conventional wine would be available in organic quality at similar price levels.     

Farmers' preferences for adopting on-farm concentration of raw milk: Results from a discrete choice experiment in Germany

Milk concentrates are used in the manufacturing of dairy products such as yogurt and cheese or are processed into milk powder. Processes for the nonthermal separation of water and valuable milk ingredients are becoming increasingly widespread at farm level. The technical barriers to using farm-manufactured milk concentrate in dairies are minimal, hence the suspicion that the practice of on-farm raw milk concentration is still fairly uncommon for economic reasons. This study, therefore, set out to investigate farmers' potential willingness to adopt a raw milk concentration plant. The empirical analysis was based on discrete choice experiments with 75 German dairy farmers to identify preferences and the possible adoption of on-farm raw milk concentration. The results showed that, in particular, farmers who deemed the current milk price to be insufficient viewed on-farm concentration using membrane technology as an option for diversifying their milk sales. We found no indication that adoption would be impeded by a lack of trustworthy information on milk processing technologies or capital.