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Factors Influencing Demand for a Producer-Owned Beef Retail Outlet


  • Lusk, Jayson L.
  • Cevallos, Edgar


As the farm-to-retail price spread continues to grow, come cattle producers a beginning to consider integrating into the retail sector. Such a venture would require large investments in capital with uncertain return. This study seeks to determine the potential success of a stand-alone retail outlet selling “all natural†beef in an affluent area of Jackson, MS. Using choice-based conjoint analysis, demand for the new retail outlet is modeled as a function of the beef price at the store, distance of the store from consumers’ homes, distance of the store from consumers’ typical grocery store, and price of beef at substitute grocery stores. Simulation results suggest the proposed outlet could be a profitable venture, depending upon location and beef price.

Suggested Citation

  • Lusk, Jayson L. & Cevallos, Edgar, 2004. "Factors Influencing Demand for a Producer-Owned Beef Retail Outlet," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), April.
  • Handle: RePEc:ags:joaaec:42939

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    References listed on IDEAS

    1. 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, vol. 80(1), pages 64-75.
    2. John A. Fox & Jason F. Shogren & Dermot J. Hayes & James B. Kliebenstein, 1998. "CVM-X: Calibrating Contingent Values with Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 455-465.
    3. Lusk, Jayson L., 2001. "Branded Beef: Is It "What's for Dinner?"," Choices, Agricultural and Applied Economics Association, vol. 16(2).
    4. 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, vol. 85(1), pages 16-29.
    5. Azzeddine M. Azzam & John R. Schroeter, 1995. "The Tradeoff between Oligopsony Power and Cost Efficiency in Horizontal Consolidation: An Example from Beef Packing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 825-836.
    6. Thilmany, Dawn D. & Grannis, Jennifer L. & Sparling, Edward, 2001. "Shopping For Meat: Empirical Demand Estimation For Natural Beef Across Store Choices," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36157, Western Agricultural Economics Association.
    7. Richard J. Sexton, 2000. "Industrialization and Consolidation in the U.S. Food Sector: Implications for Competition and Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1087-1104.
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    Cited by:

    1. Dobbs, Leah Moore & Jensen, Kimberly L. & Leffew, Megan Bruch & English, Burton C. & Lambert, Dayton M. & Clark, Christopher D., 2016. "Consumer Willingness to Pay for Tennessee Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), July.
    2. Imami, Drini & Chan-Halbrendt, Catherine & Zhang, Quanguo & Zhllima, Edvin, 2011. "Conjoint Analysis of Consumer Preferences for Lamb Meat in Central and Southwest Urban Albania," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 14(3).
    3. Dobbs, Leah & Jensen, Kimberly & Leffew, Megan & English, Burton & Lambert, Dayton & Clark, Christopher, 2015. "Willingness to Pay for Tennessee Beef among Tennessee Consumers," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196672, Southern Agricultural Economics Association.

    More about this item


    beef; conjoint; demand; retail outlet; Q13; D12; D4; M31;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing


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