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The Impact of Hormone Use Perception on Consumer Meat Preference

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Listed:
  • Yang, Ruoye
  • Raper, Kellie Curry
  • Lusk, Jayson L.

Abstract

Consumers see retail beef products labeled as produced with no added hormones (NAH), but also see similar labels on pork and chicken products on market shelves despite the fact that added hormones are not used in production. This may mislead consumers to think hormones are used in meat production as a whole. This research examines the impact of hormone use perception on consumer preference for meat products. Specifically, we assess consumer perception of hormone use in different livestock species as compared to actual use in production. We then assess whether hormone use perception affects consumer choice for unlabeled meat products. Finally, we identify whether consumer perception of hormone use affects willingness to pay (WTP) premiums for meat products labeled as produced with NAH. Choice experiment data was collected using Oklahoma State University monthly Food Demand Survey. Results indicate that consumers underestimate the rate of hormone use in cattle production, but overestimate the rate of hormone use in pork and chicken production. Results from a conditional logit model suggest that consumer perception of hormone use can affect food preferences for unlabeled meat products. Using a Tobit model, we also found WTP premiums for the NAH label are affected by consumer perception of hormone use and by demographic characteristics.

Suggested Citation

  • Yang, Ruoye & Raper, Kellie Curry & Lusk, Jayson L., 2017. "The Impact of Hormone Use Perception on Consumer Meat Preference," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252772, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea17:252772
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    File URL: http://purl.umn.edu/252772
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    References listed on IDEAS

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    7. Jayson L. Lusk & Ted C. Schroeder & Glynn T. Tonsor, 2014. "Editor's choice Distinguishing beliefs from preferences in food choice," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 41(4), pages 627-655.
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    More about this item

    Keywords

    meat demand; hormone use; choice experiment; Agribusiness; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries; Q13;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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