The effect of information on beef husbandry systems on consumers' preferences and willingness to pay

Abstract

This paper evaluates communication treatments and price differentiation for beef raised organically and in conventional animal husbandry production systems. Data were obtained from a choice experiment, assessing animal husbandry, organic or conventional production and price, with 676 consumers in six grocery stores in three different German cities. When choosing beef, participants exhibited a high preference for enhanced husbandry conditions and organic production. Without further information about the husbandry conditions, 'organic' and 'pasture-based' production labelling was most likely to influence buying decisions. When informed about the conditions of 'extensive suckler cow husbandry', consumers were most likely to be motivated by the label 'extensive suckler cow husbandry', followed by 'organic production'; accordingly, willingness to pay for a beef steak was highest for 'extensive suckler cow husbandry'. Informing consumers about suckler cow husbandry results in a change of their preferences from 'organic' to 'extensive suckler cow husbandry'. This holds great potential for extensively produced beef.

Keywords: Animal welfare; Choice experiments; Communication; Ethical production; Labelling; Willingness to pay.