U.S. Consumers' Preference and Willingness to Pay for Country-of-Origin-Labeled Beef Steak and Food Safety Enhancements

Kar Ho Lim, Wuyang Hu, Leigh J. Maynard, Ellen Goddard

Research output: Contribution to journalArticle

54 Citations (Scopus)

Abstract

While previous studies have investigated country-of-origin effect from various angles, the extent to which Country-of-Origin Labelling (COOL) affects U.S. beef imports from specific countries remains unexplored. Using data from 1,079 consumers from the United States, we examined consumers' willingness to pay (WTP) for Canadian and Australian beefsteaks. We also estimated WTP for bovine spongiform encephalopathy (BSE)-tested traceability-enabled, tenderness-assured, and natural beef. The results from both a mixed logit model and a latent class model (LCM) revealed unobserved taste heterogeneity and important differences in the WTP between the imported and domestic steak. The LCM, for instance, estimated the range of discount needed for consumers to switch from U.S. to Canadian steak as $1.09 to $35.12 per pound. This strongly suggested that U.S. consumers prefer domestic-originated beef to imported beef. In addition, consumers were found to be willing to pay significant amount for BSE-tested, traceability-enabled, and tenderness-assured beef.

Original languageEnglish
Pages (from-to)93-118
Number of pages26
JournalCanadian Journal of Agricultural Economics
Volume61
Issue number1
DOIs
Publication statusPublished - 2013 Mar 1
Externally publishedYes

Fingerprint

food safety
steaks
willingness to pay
consumer preferences
bovine spongiform encephalopathy
beef
traceability
country of origin labeling
import
logit analysis
imports
Willingness-to-pay
Beef
Country of origin
Food safety
Consumer preferences
Enhancement
Latent class model
Bovine spongiform encephalopathy
Traceability

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Animal Science and Zoology
  • Economics and Econometrics
  • Ecology
  • Global and Planetary Change

Cite this

U.S. Consumers' Preference and Willingness to Pay for Country-of-Origin-Labeled Beef Steak and Food Safety Enhancements. / Lim, Kar Ho; Hu, Wuyang; Maynard, Leigh J.; Goddard, Ellen.

In: Canadian Journal of Agricultural Economics, Vol. 61, No. 1, 01.03.2013, p. 93-118.

Research output: Contribution to journalArticle

@article{0a449546fd7642e2afef390f10c4a733,
title = "U.S. Consumers' Preference and Willingness to Pay for Country-of-Origin-Labeled Beef Steak and Food Safety Enhancements",
abstract = "While previous studies have investigated country-of-origin effect from various angles, the extent to which Country-of-Origin Labelling (COOL) affects U.S. beef imports from specific countries remains unexplored. Using data from 1,079 consumers from the United States, we examined consumers' willingness to pay (WTP) for Canadian and Australian beefsteaks. We also estimated WTP for bovine spongiform encephalopathy (BSE)-tested traceability-enabled, tenderness-assured, and natural beef. The results from both a mixed logit model and a latent class model (LCM) revealed unobserved taste heterogeneity and important differences in the WTP between the imported and domestic steak. The LCM, for instance, estimated the range of discount needed for consumers to switch from U.S. to Canadian steak as $1.09 to $35.12 per pound. This strongly suggested that U.S. consumers prefer domestic-originated beef to imported beef. In addition, consumers were found to be willing to pay significant amount for BSE-tested, traceability-enabled, and tenderness-assured beef.",
author = "Lim, {Kar Ho} and Wuyang Hu and Maynard, {Leigh J.} and Ellen Goddard",
year = "2013",
month = "3",
day = "1",
doi = "10.1111/j.1744-7976.2012.01260.x",
language = "English",
volume = "61",
pages = "93--118",
journal = "Canadian Journal of Agricultural Economics",
issn = "0008-3976",
publisher = "Wiley-Blackwell",
number = "1",

}

TY - JOUR

T1 - U.S. Consumers' Preference and Willingness to Pay for Country-of-Origin-Labeled Beef Steak and Food Safety Enhancements

AU - Lim, Kar Ho

AU - Hu, Wuyang

AU - Maynard, Leigh J.

AU - Goddard, Ellen

PY - 2013/3/1

Y1 - 2013/3/1

N2 - While previous studies have investigated country-of-origin effect from various angles, the extent to which Country-of-Origin Labelling (COOL) affects U.S. beef imports from specific countries remains unexplored. Using data from 1,079 consumers from the United States, we examined consumers' willingness to pay (WTP) for Canadian and Australian beefsteaks. We also estimated WTP for bovine spongiform encephalopathy (BSE)-tested traceability-enabled, tenderness-assured, and natural beef. The results from both a mixed logit model and a latent class model (LCM) revealed unobserved taste heterogeneity and important differences in the WTP between the imported and domestic steak. The LCM, for instance, estimated the range of discount needed for consumers to switch from U.S. to Canadian steak as $1.09 to $35.12 per pound. This strongly suggested that U.S. consumers prefer domestic-originated beef to imported beef. In addition, consumers were found to be willing to pay significant amount for BSE-tested, traceability-enabled, and tenderness-assured beef.

AB - While previous studies have investigated country-of-origin effect from various angles, the extent to which Country-of-Origin Labelling (COOL) affects U.S. beef imports from specific countries remains unexplored. Using data from 1,079 consumers from the United States, we examined consumers' willingness to pay (WTP) for Canadian and Australian beefsteaks. We also estimated WTP for bovine spongiform encephalopathy (BSE)-tested traceability-enabled, tenderness-assured, and natural beef. The results from both a mixed logit model and a latent class model (LCM) revealed unobserved taste heterogeneity and important differences in the WTP between the imported and domestic steak. The LCM, for instance, estimated the range of discount needed for consumers to switch from U.S. to Canadian steak as $1.09 to $35.12 per pound. This strongly suggested that U.S. consumers prefer domestic-originated beef to imported beef. In addition, consumers were found to be willing to pay significant amount for BSE-tested, traceability-enabled, and tenderness-assured beef.

UR - http://www.scopus.com/inward/record.url?scp=84874115766&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84874115766&partnerID=8YFLogxK

U2 - 10.1111/j.1744-7976.2012.01260.x

DO - 10.1111/j.1744-7976.2012.01260.x

M3 - Article

VL - 61

SP - 93

EP - 118

JO - Canadian Journal of Agricultural Economics

JF - Canadian Journal of Agricultural Economics

SN - 0008-3976

IS - 1

ER -