Skip to main content Accessibility help
×
Home

Experimental Evidence on Willingness to Pay for Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan

  • David L. Dickinson (a1) and Dee Von Bailey (a2)

Abstract

We employed Vickrey auctions to generate willingness-to-pay (WTP) data for red meat traceability and related product characteristics with comparable experimental auctions in the United States, Canada, the U.K., and Japan. The results show that subjects are willing to pay a nontrivial premium for traceability, but the same subjects show even higher WTP for traceability-provided characteristics like additional meat safety and humane animal treatment guarantees. The implication is that producers might be able to implement traceable meat systems profitably by tailoring the verifiable characteristics of the product to consumer preferences.

Copyright

References

Hide All
Agriculture and Agri-Food Canada. Putting Canada First: An Architecture for Agricultural Policy in the 21st Century. Federal-Provincial-Territorial Framework Agreement on Agricultural and Agri-Food Policy for the Twenty-First Century, Part II, Section B, paragraph 21.1.4, 2002. Ottawa, Ontario, Canada.
Bailey, D., Jones, E., and Dickinson, D.L.. “Knowledge Management and Comparative International Strategies On Vertical Information Flow in the Global Food System.American Journal of Agricultural Economics 84,5 (December 2002): 1337–44.
Buhr, B.Electronic Traceability in European and U.S. Meat Supply Chains.” Presentation at the National Pork Industry Forum, Denver, CO, 28 February 2002.
Caswell, J.A.Labeling Policy for GMOs: To Each His Own?AgBioForum 9(2000):5357.
Dickinson, D.L., and Bailey, D.. “Meat Traceability: Are U.S. Consumers Willing To Pay for It?Journal of Agricultural and Resource Economics 27,2(December 2002):348364.
Farm Foundation. “Food Traceability & Assurance in the Global Food System.” Jones, E.C. and Bailey, D., eds. Farm Foundation's Traceability and Assurance Panel Report, July 2004. Oak Brook, IL.
Hobbs, J.E.Transaction Costs and Slaughter Cattle Procurement: Processors' Selection of Supply Channels.Agribusiness: An International Journal 12(1996a):509–23.
Hobbs, J.E.A Transaction Cost Analysis of Quality, Traceability, and Animal Welfare Issues in UK Beef Retailing.British Food Journal 98(1996b):1626.
Huffman, W.E., Rousu, M., Shogren, J.F., and Tegene, A.. “Consumer Willingness to Pay for Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions.Journal of Agricultural and Resource Economics 28,3(December 2003a):481502.
Huffman, W.E., Rousu, M., Shogren, J.F., and Tegene, A.. “The Public Good Value of Information from Agribusinesses on Genetically Modified Foods.American Journal of Agricultural Economics 85,5(December 2003b): 1309–15.
Liddell, S., and Bailey, D.. “Market Opportunities and Threats to the U.S. Pork Industry Posed by Traceability Systems.International Food and Agribusiness Management Review 4(2001): 287302.
Loureiro, M.L.Rethinking New Wines: Implications of Local and Environmentally Friendly Labels.Food Policy 28(October-December 2003):547–60.
Loureiro, M.L., and Umberger, W.J.. “Estimating Consumer Willingness to Pay for Country-of-Origin Labeling.Journal of Agricultural and Resource Economics 28,2(August 2003):287301.
Lusk, J.L., Daniel, M.S., Mark, D.R., and Lusk, C.L.Alternative Calibration and Auction Institutions for Predicting Consumer Willingness to Pay for Nongenetically Modified Corn Chips.Journal of Agricultural and Resource Economics 26,1 (July 2001):4057.
Lusk, J.L., and Fox, J.A.. “Consumer Demand for Mandatory Labeling of Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn.Journal of Agricultural and Applied Economics 34,1(April 2002):2738.
Lusk, J.L., Roosen, J., and Fox, J.A.. “Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States.American Journal of Agricultural Economics 85,1(February 2003):1629.
Rousu, M., Huffman, W.E., Shogren, J.F., and Tegene, A.. “Estimating the Public Value of Conflicting Information: The Case of Genetically Modified Foods. Land Economics 80(February 2004): 125–35.
Shogren, J.F., Fox, J.A., Hayes, D.J., and Roosen, J.. “Observed Choices for Food Safety in Retail, Survey, and Auction Markets.American Journal of Agricultural Economics 81,5 (December 1999): 1192–99.
Shogren, J.F., List, J.A., and Hayes, D.J.. “Preference Learning in Consecutive Experimental Auctions.American Journal of Agricultural Economics 82,4(November 2000): 1016–21.
Shogren, J.F., Shin, S.Y., Hayes, D.J., and Kliebenstein, J.B.. “Resolving Differences in Willingness to Pay and Willingness to Accept.American Economic Review 84(March 1994):255–70.
Smith, M. (Partnership for Quality and Marketing Program Manager Harris Beef Ranches), personal communication, December 2004.
Sparks Companies, Inc.Linking the Food Chain: Sharing Information and Verifying Sources, Materials and Processes Across Traditional Boundaries.” A multi-client study, Memphis, TN, November 2002.
United States Department of Agriculture, Economic Research Service (USDA-ERS). Food Marketing and Price Spreads—Meat Price Spreads. Internet site: http://www.ers.usda.gov/briefing/FoodPriceSpreads/meatpricespreads/(Accessed January 2005a).
United States Department of Agriculture, Economic Research Service (USDA-ERS). United States Animal Identification Plan (USAIP). Internet site: http://www.usaip.info (Accessed January 2005b).

Keywords

Experimental Evidence on Willingness to Pay for Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan

  • David L. Dickinson (a1) and Dee Von Bailey (a2)

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed