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European Consumer Preferences For U.S. And Domestic Beef: Willingness To Pay For Source Verification, Hormone-Free, And Genetically Modified Organism-Free Beef

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Author Info

  • Tonsor, Glynn T.
  • Schroeder, Ted C.

Abstract

The European Union (EU) ban on the production and importation of meat derived from animals treated with growth-promoting hormones has spurred considerable debate. However, relatively little research has considered how EU consumers have been affected or how they feel about the ban. The purpose of this research is to determine beef product preferences of EU consumers and to elicit how much, if anything, these consumers are willing to pay for their preferred attributes. More specifically, this study uses a non-hypothetical choice experiment to evaluate how EU consumers value beef steaks from animals produced using growth hormones, fed genetically modified feeds, and from U.S. origin relative to their typical, domestically produced steaks. Results reveal that consumers in London, England; Frankfurt, Germany; and Paris, France are on average willing to pay a premium ($8.75/lb, $3.25/lb, and $0.98/lb, respectively) for a "USDA Choice No Hormones or GMOs" steak as opposed to their "Domestic Typical" steak. Additionally, these consumers indicated a willingness to pay a premium for both U.S. produced hormone-free beef ($0.86/lb in London, $1.93/lb in Frankfurt, and $0.30/lb in Paris) and for U.S. produced beef free of genetically modified organisms ($8.88/lb in London, $2.55/ lb in Frankfurt, and $2.79/lb in Paris) relative to USDA Choice beef.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 21974.

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Date of creation: 2003
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Handle: RePEc:ags:aaea03:21974

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Keywords: Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;

References

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  1. Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003. "Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 85(1), pages 16-29.
  2. Umberger, Wendy J. & Feuz, Dillon M. & Calkins, Chris R. & Killinger, Karen M., 2001. "Us Consumer Preference For Domestic Corn-Fed Versus International Grass-Fed Beef," International Trade in Livestock Products Symposium, January 18-19, 2001, Auckland, New Zealand, International Agricultural Trade Research Consortium 14543, International Agricultural Trade Research Consortium.
  3. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
  4. Burton, Michael P. & Rigby, Dan & Young, Trevor & James, Sallie, 2002. "Consumer Attitudes to Genetically Modified Organisms in Food in the UK," 2002 Conference (46th), February 13-15, 2002, Canberra, Australian Agricultural and Resource Economics Society 125064, Australian Agricultural and Resource Economics Society.
  5. Roxanne Clemens & Bruce A. Babcock, 2002. "Why Can't U.S. Beef Compete in the European Union?," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications, Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University 02-mbp4, Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University.
  6. Bureau, Jean-Christophe & Marette, Stephan & Schiavina, Alessandra, 1998. "Non-tariff Trade Barriers and Consumers' Information: The Case of the EU-US Trade Dispute over Beef," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(4), pages 437-62.
  7. Adamowicz, Wiktor L. & Boxall, Peter C. & Williams, Michael & Louviere, Jordan, 1995. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation," Staff Paper Series, University of Alberta, Department of Resource Economics and Environmental Sociology 24126, University of Alberta, Department of Resource Economics and Environmental Sociology.
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Cited by:
  1. Julie A. Caswell & Siny Joseph, 2007. "Consumer Demand for Quality: Major Determinant for Agricultural and Food Trade in the Future?," Working Papers, University of Massachusetts Amherst, Department of Resource Economics 2007-4, University of Massachusetts Amherst, Department of Resource Economics.
  2. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 30(01), April.

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