Role of credence and health information in determining US consumers' willingness-to-pay for grass-finished beef
Date
2009
Authors
Umberger, W.
Boxall, P.
Lacy, R.
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Journal article
Citation
Australian Journal of Agricultural and Resource Economics, 2009; 53(4):603-623
Statement of Responsibility
Wendy J. Umberger, Peter C. Boxall and R. Curt Lacy
Conference Name
Abstract
<jats:p>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.</jats:p>
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Description
© 2009 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd.