Consumers' Preference Heterogeneity for GM and Organic Food Products in Germany

ABSTRACT According to the EU co‐existence strategy, no form of agricultural food production system should be excluded. The driving force for this policy is the need to ensure consumers' freedom of choice. The aim of this study is to analyze whether preference heterogeneity for a GM and an organic variant of the same product exists among German consumers. The analysis is based on a survey conducted in spring 2007 in Germany. The specified mixed‐logit and latent class model show significant preference heterogeneity for both production technologies. We found one consumer segment with opposing preferences for GM and organic products and a second one exhibiting positive preferences for GM and organic products. The consumers in the second segment are possibly those who would most benefit from the EU co‐existence strategy and would probably be willing to cover the additional costs associated with a co‐existence strategy in the existing food value chains (D12). [EconLit citations: D12].