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Consumers Valuations and Choice Processes of Food Safety Enhancement Attributes: An International Study of Beef Consumers

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Author Info
Tonsor, Glynn T.
Schroeder, Ted C.
Pennings, Joost M.E.
Mintert, James

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Abstract

Food safety concerns have had dramatic impacts on food and livestock markets in recent years. Here we examine consumer preferences for various beef food safety assurances. In particular, we evaluate the extent to which such preferences are heterogeneous within and across country-of-residence defined groups and examine the distributional nature of these preferences with respect to marginal improvements in food safety. We collected data from over 4,000 U.S., Canada, Japan, and Mexican consumers. Using mixed logit models we find that Japanese and Mexican consumers have WTP preferences that are nonlinear in the level of food safety risk reduction. Conversely, U.S .and Canadian consumers appear to possess linear preferences. These results suggest that optimal food safety investment strategies hinge critically upon consumer perception of actual food safety improvements, the distributional relationship describing the targeted consumer segment's tradeoff function between WTP premiums and risk reduction levels, and the cost structure of these investments.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN with number 9976.

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Date of creation: 2007
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Handle: RePEc:ags:aaea07:9976

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Related research
Keywords: consumer beef preference; food safety; investment decision; mixed logit; willingness-to-pay; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

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