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

Wendy Umberger, Peter Boxall and R. Curt Lacy

Australian Journal of Agricultural and Resource Economics, 2009, vol. 53, issue 4, 21

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 willingnessto- 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.

Keywords: Agribusiness; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (17)

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Journal Article: Role of credence and health information in determining US consumers' willingness-to-pay for grass-finished beef (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:161983

DOI: 10.22004/ag.econ.161983

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