Abstract
The dairy industry in the United States (U.S.) produces a large volume of manure every day, which has adverse effects on the environment by increasing greenhouse gas (GHG) emissions and nutrient runoff. To minimize the environmental impact of manure, the U.S. dairy industry is committed to utilizing and implementing new technology in manure management. However, the adoption and implementation of new technology come with a higher cost for the produced milk. Therefore, it is important to assess the consumer's perspective and market evaluation of milk and milk products that are produced in an environmentally sustainable manner. In this study, we explored the consumer's willingness to pay (WTP) for milk produced on dairy farms that could use reactive water-filtration treatment (RWT), an innovative technology that promotes environmental sustainability. We utilized a choice experiment methodology to analyze consumers' preferences in the context of GHG emissions, nutrient runoff reduction, milk pricing dynamics related to a gallon of milk, and diverse production methods. An online survey was undertaken in four regions of the U.S. to collect data from individuals who regularly purchase milk from grocery stores. A total of 767 respondents participated in the survey. The results of the survey indicate that consumers are willing to pay more for milk produced in a sustainable manner, with the highest premium observed for milk produced through organic methods. The study suggests that there is a potential market for this type of differentiated milk, which could provide a new revenue stream for dairy farmers who adopt sustainable technology. Additionally, this study provides insights into the factors that influence consumer preferences for this type of milk, which can inform targeted marketing strategies to promote the adoption of sustainable dairy practices. Overall, this research aims to provide valuable insights into sustainable practices and consumer behavior, contributing to the ongoing discourse in this field.