Consumers’ Preferences and Willingness-to-Pay for Beef Originating from the U.S., Canada, and Australia

Abstract

Consumers participated in an experimental auction and taste panel to elicit willingness to pay for beef originating from the United States, Australia, and Canada. Consumers were willing to pay an average of 19% more for a "Guaranteed U.S." steak than for an unlabeled steak. However, a segment of the population preferred the taste and these consumers were willing to pay a premium for beef originating &om Australia, and 34% of the consumers preferred the taste and were wiUing to pay a premium for Canadian steak. Premiums were 31% and 10% more for the U.S. steak than for Australian and Canadian steaks, respectively.