In the dairy industry it pays to label

By Philip Fine

Editor’s Note: The FDA recently ruled that it is illegal for milk producers to label milk rBST-free. More>

MADISON, Wisconsin, September 26, 2003: Results from a recent study of consumer habits reveals shoppers are willing to pay extra, as much as $3 a gallon, for the assurance their milk products are fee of artificial growth hormones, pesticides residues or genetic modifications.

The study completed by the University of Wisconsin-Madison found that consumers will pay up to US$1.50 per gallon more for milk labeled rBST-free and US$3 per gallon more for milk labeled organic. They also found that market competition from the introduction of those labels slightly decreased the price of standard milk.

Researchers Jeremy Foltz and Tirtha Dhar looked at milk purchases made in 12 key US metropolitan markets.

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