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Beef Quality: Will Consumers Pay For Less Fat?

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  • Unnevehr, Laurian J.
  • Bard, Sharon K.

Abstract

A nationwide retail survey is used to estimate hedonic prices of fat characteristics in beef table cuts. Results show that consumers consistently place a negative value on external fat for all table cuts and on seam fat in chuck and round cuts, but do not consistently value intramuscular fat. These consumer preferences are not transmitted to cattle feeders through price signals, even though the current beef grading system can distinguish carcasses with undesirable fat characteristics.

Suggested Citation

  • Unnevehr, Laurian J. & Bard, Sharon K., 1993. "Beef Quality: Will Consumers Pay For Less Fat?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(02), December.
  • Handle: RePEc:ags:jlaare:30964
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    Cited by:

    1. Ward, Clement E. & Lusk, Jayson L. & Dutton, Jennifer M., 2008. "Implicit Value of Retail Beef Product Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), December.
    2. McVey, Marty Jay, 1996. "Valuing quality differentiated grains from a total logistics perspective," ISU General Staff Papers 1996010108000012326, Iowa State University, Department of Economics.
    3. Boland, Michael & Schroeder, Ted, 2002. "Marginal Value of Quality Attributes for Natural and Organic Beef," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(01), pages 39-49, April.
    4. Tronstad, Russell, 1995. "Importance Of Melon Type, Size, Grade, Container, And Season In Determining Melon Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), July.
    5. N. Koffi Amegbeto & Victor M. Manyong & Ousmane Coulibaly & Robert Asiedu, 2008. "Estimating market demand for fresh yam characteristics using contingent valuation: implications for crop breeding and production choices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 349-363, November.
    6. Johnson, Heather C. & Ward, Clement E., 2006. "Impact of Beef Quality on Market Signals Transmitted by Grid Pricing," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(01), April.
    7. Farrell, Terence C., 2009. "Identification of substitute groups for retail beef demand and supply equations," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 17.
    8. Shongwe, M.A. & Jooste, Andre & Hugo, A. & Alemu, Zerihun Gudeta & Pelser, A., 2007. "Will consumers pay less for fat on beef cuts? The case in Bloemfontein, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(4), December.
    9. Smed, Sinne & Hansen, Lars Garn, 2010. "Consumer valuation of health attributes in food," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116390, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
    10. Schulz, Lee L. & Schroeder, Ted C. & White, Katharine L., 2012. "Value of Beef Steak Branding: Hedonic Analysis of Retail Scanner Data," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(2), August.
    11. Martinez, Stephen W., 2011. "Brand Premiums in the U.S. Beef Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 42(2), July.
    12. Min-Yang Lee, 2014. "Hedonic Pricing of Atlantic Cod: Effects of Size, Freshness, and Gear," Marine Resource Economics, University of Chicago Press, vol. 29(3), pages 259-277.
    13. Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Demand for beef in Malaysia: Quality or Quantity?," MPRA Paper 15035, University Library of Munich, Germany.
    14. Martinez, Stephen W., 2008. "Estimating the Value of Retail Beef Product Brands and Other Attributes," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6455, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Guijing WANG & Stanley M. FLETCHER & Dale H. CARLEY, "undated". "Determinants Of Demand For Beef: The Impact Of Fat Trimming," Department of Resource Economics Regional Research Project 95412, University of Massachusetts.
    16. Farrell, Terence C., 2001. "Modelling Meat Quality Attributes," 2001 Conference (45th), January 23-25, 2001, Adelaide 125624, Australian Agricultural and Resource Economics Society.

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    Keywords

    Consumer/Household Economics;

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