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Role of credence and health information in determining US consumers' willingness-to-pay for grass-finished beef

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  • Wendy J. Umberger
  • Peter C. Boxall
  • R. Curt Lacy

Abstract

Consumer demand for forage- or grass-finished beef is rapidly emerging in the US. This research uses data elicited from consumer surveys and experimental auctions to provide insight on product attributes (taste/flavour, credence and nutritional characteristics) and socio-demographic factors that are most important in determining US consumers' preferences and willingness to pay premiums for grass-finished versus grain-finished beef. Information related to beef production processes increased the probability consumers would be willing to pay a premium for grass-fed beef. However, it appears that health-related messages are more important drivers of willingness-to-pay, on average, than the absence of antibiotics and supplemental hormones and traceability. Labelling information regarding grass-fed beef's nutritional content and related production processes is vital for maintaining and growing premium niche markets for grass-fed beef in the US. The relative size of the willingness to pay estimates compared to previous cost estimates suggest that the Australian beef industry may have a comparative advantage for finishing beef on forage and marketing premium grass-fed differentiated beef products in the US market. Copyright 2009 The Authors. Journal compilation 2009 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd.

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  • Wendy J. Umberger & Peter C. Boxall & R. Curt Lacy, 2009. "Role of credence and health information in determining US consumers' willingness-to-pay for grass-finished beef," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 603-623, October.
  • Handle: RePEc:bla:ajarec:v:53:y:2009:i:4:p:603-623
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    2. Maples, Joshua G. & Lusk, Jayson L. & Peel, Derrell S., 2016. "When Bigger Isn't Better: Steak Size and Consumer Preferences," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235432, Agricultural and Applied Economics Association.
    3. Abidoye, Babatunde O. & Bulut, Harun & Lawrence, John D. & Mennecke, Brian & Townsend, Anthony M., 2011. "U.S. Consumers’ Valuation of Quality Attributes in Beef Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(1), pages 1-12, February.
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    6. Marthe Hårvik Austgulen & Silje Elisabeth Skuland & Alexander Schjøll & Frode Alfnes, 2018. "Consumer Readiness to Reduce Meat Consumption for the Purpose of Environmental Sustainability: Insights from Norway," Sustainability, MDPI, vol. 10(9), pages 1-24, August.
    7. Amelia Ahles & Marco A. Palma & Andreas C. Drichoutis, 2024. "Testing the effectiveness of lottery incentives in online experiments," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(4), pages 1435-1453, August.
    8. Marandure, Tawanda & Dzama, Kennedy & Bennett, James & Makombe, Godswill & Mapiye, Cletos, 2020. "Application of system dynamics modelling in evaluating sustainability of low-input ruminant farming systems in Eastern Cape Province, South Africa," Ecological Modelling, Elsevier, vol. 438(C).
    9. Jeffrey Gillespie & Richard Nehring, 2013. "Comparing economic performance of organic and conventional U.S. beef farms using matching samples," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(2), pages 178-192, April.
    10. Maples, Joshua G. & Lusk, Jayson L. & Peel, Derrell S., 2018. "Unintended consequences of the quest for increased efficiency in beef cattle: When bigger isn’t better," Food Policy, Elsevier, vol. 74(C), pages 65-73.
    11. Gillespie, Jeffrey & Sitienei, Isaac & Bhandari, Basu & Scaglia, Guillermo, 2016. "Grass-Fed Beef: How is it Marketed by US Producers?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-18, May.
    12. Lyford, Conrad P. & Thompson, John M. & Polkinghorne, Rod & Miller, Mark F. & Nishimura, Takanori & Neath, Kate & Allen, Paul & Belasco, Eric J., 2010. "Is willingness to pay (WTP) for beef quality grades affected by consumer demographics and meat consumption preferences?," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 18, pages 1-18.
    13. Costanigro, Marco & Kroll, Stephan & Thilmany, Dawn D. & Bunning, Marisa, 2010. "Do Taste Buds Trump Labels and Information? A Sensory Test and Economic Experiment on Organic and Local Apples," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61668, Agricultural and Applied Economics Association.
    14. Schnettler, Berta & Sánchez, Mercedes & Orellana, Ligia & Sepúlveda, José, 2013. "Country of origin and ethnocentrism: a review from the perspective of food consumption," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 17.
    15. Gwin, Lauren & Durham, Catherine A. & Miller, Jason D. & Colonna, Ann, 2012. "Understanding Markets for Grass-Fed Beef: Taste, Price, and Purchase Preferences," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-21.
    16. de Boer, Joop & Aiking, Harry, 2017. "Pursuing a Low Meat Diet to Improve Both Health and Sustainability: How Can We Use the Frames that Shape Our Meals?," Ecological Economics, Elsevier, vol. 142(C), pages 238-248.
    17. Biancamaria Torquati & Tiziano Tempesta & Daniel Vecchiato & Sonia Venanzi, 2018. "Tasty or Sustainable? The Effect of Product Sensory Experience on a Sustainable New Food Product: An Application of Discrete Choice Experiments on Chianina Tinned Beef," Sustainability, MDPI, vol. 10(8), pages 1-24, August.
    18. Franco, Bruna Maria Remonato & Souza, Ana Paula Oliveira & Molento, Carla Forte Maiolino, 2018. "Welfare-friendly Products: availability, labeling and opinion of retailers in Curitiba, Southern Brazil1," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 56(1), January.
    19. Schnettler, Berta & Sánchez, Mercedes & Orellana, Ligia & Sepúlveda, José, 2013. "Country of origin and ethnocentrism: a review from the perspective of food consumption," Economi­a Agraria (Revista Economia Agraria), Agrarian Economist Association (AEA), Chile, vol. 17, pages 1-17, December.
    20. Britwum, Kofi & Yiannaka, Amalia, 2019. "Consumer willingness to pay for food safety interventions: The role of message framing and issue involvement," Food Policy, Elsevier, vol. 86(C), pages 1-1.

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