Factors Influencing Demand for a Producer-Owned Beef Retail Outlet

Jayson Lusk and Edgar Cevallos

Journal of Agricultural and Applied Economics, 2004, vol. 36, issue 01, 15

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

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:ags:joaaec:42939

DOI: 10.22004/ag.econ.42939

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