An Empirical Test on Dairy Safety Management Policy Effect in China: A Study by Choice Experiment on Consumers’ IMF Preference

In order to improve consumer confidence on domestic Infant Milk Formula (IMF), Chinese government put forward multiple dairy safety management policies consecutively. Based on the analysis of policy background, using traceable information label, brand, production place and sales channels as main attributes, the paper designed and implemented choice experiment (CE), and used random parameters Logit model to analyze consumers’ willingness to pay (WTP) so as to examine the effects of public management policy. The research showed that consumer had a higher WTP to IMF with traceable information label, famous brand and overseas production place. But the recognition degree on IMF sold in drugstores is not high. Therefore, promoting domestic dairy company to set up traceable information label system, implementing merger and reorganization and producing dairy on overseas are expected to become effective paths to improve consumers’ confidence while the role of pharmacy sales may be very limited.