How Local Is Local? A Reflection on Canadian Local Food Labeling Policy from Consumer Preference

We conducted a nationwide choice experiment to gauge Canadian consumers’ willingness to pay (WTP) for local beef assigned with various mileage and geopolitical connotations. Results revealed that consumers are mostly indifferent between products labeled generically as “local” and as “local: from within 160 km,” implying that the 160‐km radius fits perception of local of the representative consumers. Additionally, consumers are willing to pay significantly more for home‐province products over products generically labeled “local.” We also found significant positive WTP for enhanced bovine spongiform encephalopathy tested beef as well as for grass‐ over grain‐fed beef.     

Valuing Quality Attributes and Country of Origin in the Korean Beef Market

For beef exporters, one of the important questions in the Korean beef market is why Korean consumers are willing to pay almost three times more for domestic Korean beef than they pay for imported beef. To answer this question, we surveyed 1,000 shoppers in Seoul, Korea, and conducted a conjoint analysis on consumers’ willingness to pay (WTP) for country equity of domestic vs. imported beef and quality attributes of marbling, freshness, genetically modified organism (GMO)‐free feed ingredients and antibiotic‐free production. Among all factors contributing to the price differentials, the most important factor seems to be the country of origin followed by the use of GMO feeds and antibiotics in beef production, marbling grade and freshness. This study finds that Korean consumers value origins of imported beef approximately $14/lb less than the Korean origin. Korean consumers’ valuation of beef quality and country of origin differs by some demographic groups: older vs. younger generations, homemakers vs. non‐homemakers and consumers who prefer to purchase packaged beef vs. consumers who prefer to purchase butcher shop beef. Our empirical findings suggest that the top priority for beef exporters who wish to increase sales and value of their beef in the Korean market must be to counter Korean consumers’ strong ethnocentrism by improving the value of their country of origin.     

Meat demand in China: to include or not to include meat away from home?

This study examines meat consumption in China, the world's largest meat consumer and producer, by considering both meat consumed at home and away from home based upon a diary‐based household survey. The results indicate that income growth leads to beef, poultry, other meat and pork away from home consumption to grow more than proportionally to total meat consumption. We also find that meats consumed away from home grow faster than at home counterparts due to higher income elasticities, suggesting that ignoring meat away from home could significantly underestimate current and future meat consumption.     

AN APPRAISAL OF A BUFFER FUND SCHEME FOR BEEF

A buffer fund scheme has been proposed as a means of stabilizing producer revenue in the Australian beef industry. In this paper the economic consequences of such a policy are evaluated and the conditions under which the scheme would be successful in achieving its principal aim are indicated. In addition to effects on the stability of producer revenue, consequences of the policy for total producer revenue and its distribution among producers are indicated. Finally, the effects on consumers, at home and abroad, and taxpayers are estimated.     

PRICE-QUALITY RELATIONSHIPS FOR BEEF IN SMITHFIELD MARKET

Smithfield beef prices are regressed on quality measurements made on beef selling in Smithfield market. Optimal weight, conformation and fat levels are derived and the revenue foregone by not obtaining these optima is estimated for Scotch, English, Republic of Ireland and Northern Irish beef. For other quality characteristics Scotch beef is taken as the norm and the revenue foregone by not producing to Scotch standards is estimated for English, Republic of Ireland and Northern Irish beef. Differences in quality levels are found to explain only a relatively small proportion of the price gap which exists between Scotch beef and beef from the three other areas.     

Canadian Cattle Cycles and Market Shocks

We analyze Canadian beef cattle cycles using time‐series properties of four variables: total cattle inventories, beef cow inventories, beef supply, and beef prices. Our aim is to provide up‐to‐date estimates of the duration of the cycles, and to determine whether or not some of the recent market shocks can be associated with changes in the nature of the cycles. Spectral decomposition of the variables reveals 10‐year cycles in total cattle inventories, beef cow inventories, beef supply, and beef prices. Seasonal and annual cycles are also found in beef supply and prices, respectively. Using intervention analysis, exchange rate appreciation, feed price escalation, and bovine spongiform encephalopathy (BSE) are modeled as pure jumps. Exchange rate and feed price shocks are modeled as having started in 2002 and 2007, respectively, and persisted up to the end of the sample period, while BSE is modeled as a shift for the period 2003 to 2005. We find significant impacts of the three shocks on total inventories, but beef supply appears to have been impacted by exchange rates and BSE. A spectral comparison of the pre‐ and post‐shock periodograms of beef supply reveals a 58% reduction in the peak amplitude of the beef supply cycle.     

Factors Influencing Consumers' Decision to Purchase Beef

Abstract

The South Korean beef import market was deregulated in 2000. As the beef import quotas were lifted in January 2001, increased market opportunities became available for exporters. Beef exporters are allowed to have direct communication with beef merchandisers in South Korea, which enable them to respond to Korean consumer demand more effectively. Korean consumers apparently have a negative perception on the quality of imported beef. However, little information is available to guide international beef exporters in the design of an export market development program. This study used a consumer mail survey in order to examine the Korean consumer beef market. While this study is exploratory by nature, it goes beyond traditional demand analysis, and it aims to provide comprehensive information on the important factors affecting Korean consumers' beef purchasing behavior. Marketing implications for beef exporters are drawn.     

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

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 willingness-to-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.     

Bovine spongiform encephalopathy in Japan: consumers' food safety perceptions and willingness to pay for tested beef*

The discovery of bovine spongiform encephalopathy (BSE), commonly known as ‘mad cow disease’, in Japan caused anxiety about consuming beef and beef products. As a result, there was a sudden fall in sales of beef that hurt the Japanese beef industry as well as major beef exporters to Japan. We analyse factors that affect Japanese consumers' willingness to pay (WTP) price premiums for BSE‐tested beef and estimate the mean WTP for BSE‐tested beef using data obtained from a consumer survey in Japan. A single‐bounded dichotomous choice contingent valuation model is used to recover the premium amount. We find that attitudes to food safety, reduction in beef consumption following the BSE outbreak, and being female all have a statistically significant positive effect on the WTP for BSE‐tested beef. Interestingly, demographic variables such as age and income do not affect the WTP, possibly indicating that the BSE scare similarly affected multiple segments of the population. In our sample, consumers are willing to pay a premium on average of greater than 50 per cent for BSE‐tested beef.     

Domestic and trade impacts of foot‐and‐mouth disease on the Australian beef industry

Australia is the sixth largest producer of beef and the second largest exporter of beef. Average beef exports from Australia are approximately 65 per cent of the total amount of beef produced, about 1.3 million tonnes. Australia is particularly vulnerable to diseases that are not endemic to the country and could close or disrupt its export markets for beef. In this study, we construct a bioeconomic optimisation model of the Australian beef industry that captures production and consumption decisions, domestically and internationally, and the impacts on the beef industry of a potentially catastrophic disease, foot‐and‐mouth disease (FMD). This study analyses localised to large‐scale outbreaks and suggests that changes in economic surplus because of FMD range from a positive net gain of $57 million to a net loss of $1.7 billion, with impacts on producers and consumers varying depending on the location of the outbreak, control levels and the nature of any trade ban.     

GENERIC PROMOTION OF BEEF: MEASURING THE IMPACT OF THE US BEEF CHECKOFF

Generic promotions of commodities are growing in importance. In the US, commodity industry assessments or checkoffs (i.e. a per unit levy or tax) are used to underwrite domestic and international promotions by commodity groups. The US beef checkoff is one of the largest of these new national commodity programmes. Evaluation of the economic impact of the beef promotion is an essential part of the beef checkoff. A model for evaluating the US beef programmes is estimated and the methodology is applicable to other commodity models that include advertising and promotion expenditures. The beef analysis shows a positive and significant return to the beef industry, with an average of approximately $5 for each $1 invested for the quarters 1987:1 through 1991:2.     

Dynamic adjustment in the US beef market with imports

This paper hypothesizes that while there are important qualitative differences in domestic beef and imported beef, beef and cattle imports also represent attempts by the US beef processing and wholesale sector to adjust to short-run changes in supply and demand. Dynamic production theory is applied to the problem to test for this adjustment process, and presents a production theory approach to meat trade that has previously been included in demand functions. The results of this analysis suggest that the method used provides a reasonable and appropriate representation of the import behavior of the US processing and wholesale beef sector.     

A NOTE ON BIAS IN THE ESTIMATED EFFECTS OF BEEF IMPORTS ON U.S. MEAT PRICES

The impact of beef imports on United States meat prices is a highly emotional and controversial issue. Congressmen representing urban districts, and to a lesser extent the Administration, look towards beef imports as a way of containing rapid increases in meat prices. Congressmen and Senators from beef-producing States regard beef imports as a direct attack on the U.S. beef-producing industry. These differing views are being reconciled through Congress considering amendments to the Meat Import Law (Public Law 88-482). The impacts and the amendments are of vital interest to Australia because about 25 per cent of Australia's beef production is sold on the lucrative U.S. market. In this note it is argued that, in general, the reported impacts on U.S. meat prices are overestimates because the analysts misspecify the structure of the U.S. beef industry.     

The dynamics of household beef consumption in Cameroon

Recent changes in economic conditions have introduced notable changes in household beef consumption patterns in Cameroon. While consumers are concerned about the short- and long-run effects of these factors on beef consumption habits, policy makers are more worried about the appropriate period necessary for households to make complete adjustments in consumption since this information is vital for planning production. Static and dynamic demand frameworks involving the Nerlovian partial adjustment (PA) model are used to capture the dynamic nature of beef consumption parameters. Maximum likelihood estimates of the PA model reveal that the conditioning variables explain 79% of the variation in beef consumption. Income, previous consumption, own-price and prices of fish and pork are jointly important in explaining beef consumption habits. Beef is a normal good with pork and fish as substitutes and chicken as a complement. Long-run price and income elasticities are greater than but not significantly different from their short-run values, suggesting that adjustment in consumption is fast with about 80% of the difference between actual and ‘desired’ consumption being completed in about 2 years. Projections show that demand for beef will reach 109620 t by the year 2000. giving an incremental total and per capita demand of 31 730 tons and 1.84 kg, respectively.     

How integrated are world beef markets? The case of Australian and U.S. beef markets

The objective of the paper is to examine market integration between Australian and U.S. beef prices at the farmgate level. If these two prices are found to be integrated then it can be alleged that Australian beef prices can be used as a world price in empirical analyses and/or as a ‘reference price’ to measure the level of support accorded the U.S. beef sector. Co-integration analysis and a time-varying parameter estimation procedure based on the Kalman filter model are applied. The paper distinguishes between steer and cow beef segments and it uses monthly data over the 1972:1 to 1993:2 period. The results indicate that Australian and U.S. beef prices are co-integrated, albeit not fully and that the degree of convergence between the various price pairs has not substantially increased over time. The results also suggest that Australian prices can not unequivocally be adopted as a world price in empirical analyses.     

中国肉牛养殖效率差异及提升途径研究

[目的]环境条件差异是我国农牧业发展的客观存在,也是导致农牧业投入产出效率千差万别的重要原因,不考虑环境条件影响的效率分析容易模糊农户的投入产出效率,进而可能掩盖效率差异的原因。通过分析发现全国各地区肉牛养殖存在着客观差异,利用模型处理将各地区环境影响处理到最小,从而得到更为准确的肉牛养殖技术效率值。[方法]文章利用国家肉牛牦牛产业技术体系肉牛养殖投入产出监测数据,采用三阶段DEA模型方法,研究农户肉牛养殖投入产出效率差异及其改善途径。[结果]（1）肉牛养殖投入产出效率与环境条件有密切的关系;（2）剔除环境条件差异影响后,87.11%样本的肉牛养殖投入产出效率发生显著变化,其中47.42%效率下降,39.69%效率提升;（3）投入要素冗余问题是肉牛养殖效率差异的本质,投入要素的冗余在剔环境条件影响后也发生了显著变化,进一步的分析发现我国肉牛养殖劳动力冗余问题在西南产区与东北产区较严重,而饲料投入冗余则呈现牧区、农区、农牧交错带地区逐渐增加的状态。[结论]提升我国肉牛投入产出效率要注重改善饲料投入冗余问题,西南和东北产区还要注重改善劳动力投入冗余的问题。     

Analysis of household attitudes toward the purchase of livestock products and fish in Cameroon

The need for additional information on household demand for meat and fish in Cameroon is addressed. Probit analysis involving the Heckman selectivity correction procedure is used to estimate the effects of individual and household characteristics on demand for beef, chicken, pork and fish. Results indicate that fish is a relative necessity in Cameroon and is often substituted for beef and chicken by households whose profiles include being of low income levels, having large household sizes, are of middle age and are less educated. Whereas chicken and pork substitute each other, they are each complementary to beef. The profiles of households likely to purchase beef include being married, middle age, educated and of the Muslim faith. Profiles for households most likely to increase their purchases of chicken include being of high income levels and are public sector employed. Some policy implications are provided.     

SUPPLY RESPONSE WITH STOCHASTIC TECHNOLOGY AND PRICES IN AUSTRALIA'S RURAL EXPORT INDUSTRIES

Risky output prices and production characterise Australian agriculture. Exports are vitally important, sometimes relying heavily on a particular market. In this study a model is developed to include explicitly both output price and technological risks as well as multiple output relationships. It is used to show that changes in US beef import policy generating a 10 per cent beef price fall could reduce Australian beef supply by 3.5 per cent and grazing industry net revenue by 8.4 per cent, despite some switching from beef production to other enterprises.     

Effects of Product Origin and Selected Demographics on Consumer Choice of Red Meats

A multinomial nonlinear nested logit model is used to test data from a stated preference questionnaire to examine the potential effect of identified product and consumer characteristics on the probability of afresh meat product being purchased. The target market of the study is western Canada, and the questionnaire is directed to randomly selected households in major cities in this region. Fresh beef products from Alberta are generally preferred by these consumers over fresh beef products from other parts of Canada. For pork, consumers are indifferent between products of Alberta and those of other Canadian origin. However, fresh beef and pork products from Canada are preferred to products from the United States. The results support origin branding of Alberta beef, but not Alberta pork. Consumer age, household income and family size all have an effect on meat choices.     

Problems in planning tropical tree crop projects and possible solutions

Abstract

This paper considers whether top‐grade diary beef produced in Japan and high‐quality beef imports from the USA are components of the same product market. In addressing this issue an approach is used for defining the nature and extent of a product market relying on the concept of instantaneous causality. The results, for selected cuts of beef, suggest that the markets are in fact separate.