Premium Potential for Geographically Labeled, Differentiated Meat Products

Abstract

Growing consumer demand for local foods and products grown under specialty production systems provides livestock producers with the opportunity to increase profits and reduce variability through production of high-value finished meat products, integration of additional species, and targeted marketing efforts. This study examines consumer preferences and willingness to purchase and pay premiums for origin-labeled differentiated beef, pork, and lamb products through a mail survey of Nevada residents. Logit model results show important differences in consumer preferences across meat products. Pricing premiums for differentiated pork and lamb products ranged from 11 to 15 percent, while those for beef products ranged from 22 to 40 percent. Additionally, premiums were higher for superior meat cuts. Product appearance attributes such as marbling, texture, and brand had a significant impact on consumer willingness to pay for all products, while product credence attributes, such as production method and origin, only had a significant impact on consumer willingness to pay for commonly known beef products. Target consumers for local differentiated pork and lamb products include higher-income, white married adults with children. Target consumers for beef products include higher-income, younger white adults. Study results show the importance of targeted consumer marketing for less commonly consumed products, such as lamb. Including information on the health benefits of specialized production methods in marketing materials would also be useful, especially if targeting seniors and ethnic groups.