Understanding Markets for Grass-Fed Beef: Taste, Price, and Purchase Preferences

Abstract

We use results of a consumer taste test conducted in Portland, Oregon, and choice-based conjoint analysis to examine consumer attitudes about grass-fed beef compared to conventional grain-fed: taste preferences, willingness to pay, and willingness to buy frozen meat in bulk. We consider the effect of demographic, attitudinal, and shopping location characteristics of consumers. A baseline, uninformed consumer will pay $0.90-$0.94/pound more for grass-fed ground beef; knowledge about production and nutritional factors increases the premium. A majority of participants would buy in bulk if they knew a producer or a friend referred them; 72% will buy frozen beef.