Factors Influencing Demand for a Producer-Owned Beef Retail Outlet

Jayson L. Lusk () and Edgar Cevallos

Journal of Agricultural & Applied Economics, 2004, vol. 36, issue 1, pages 97-111

Abstract: As the farm-to-retail price spread continues to grow, some cattle producers are 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.

Keywords: beef; conjoint; demand; retail outlet (search for similar items in EconPapers)
JEL-codes: Q13 D12 D4 M31 (search for similar items in EconPapers)

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Journal of Agricultural & Applied Economics is edited by Jeffrey M. Gillespie

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