Hostname: page-component-cd9895bd7-jn8rn Total loading time: 0 Render date: 2024-12-26T15:52:07.834Z Has data issue: false hasContentIssue false
  • English
  • Français

Factors Influencing Demand for a Producer-Owned Beef Retail Outlet

Published online by Cambridge University Press:  28 April 2015

Jayson L. Lusk  and
Edgar Cevallos
Jayson L. Lusk
Affiliation:
Department of Agricultural Economics, Purdue University, West Lafayette, IN
Edgar Cevallos
Affiliation:
Department of Agricultural Economics, Mississippi State University, Mississippi State, MS
Get access Rights & Permissions [Opens in a new window]

Abstract

As the farm-to-retail price spread continues to grow, some cattle producers are beginning to consider integrating into the retail sector. Such a venture would require large investments in capital with uncertain return. This study seeks to determine the potential success of a stand-alone retail outlet selling “all natural” beef in an affluent area of Jackson, MS. Using choice-based conjoint analysis, demand for the new retail outlet is modeled as a function of the beef price at the store, distance of the store from consumers' homes, distance of the store from consumers' typical grocery store, and price of beef at substitute grocery stores. Simulation results suggest the proposed outlet could be a profitable venture, depending upon location and beef price.

Keywords

beefconjointdemandretail outletQ13D12D4M31
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 1 , April 2004 , pp. 97 - 111
Copyright
Copyright © Southern Agricultural Economics Association 2004

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adamowicz, W., Boxall, R., Williams, M., and Louviere, J.. “Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation.” American Journal of Agricultural Economics 80(February 1998):64–75.CrossRefGoogle Scholar
Azzam, A.M., and Schroeter, J.R.. “The Tradeoff Between Oligopsony Power and Cost Efficiency in Horizontal Consolidation: An Example from Beef Packing.” American Journal of Agricultural Economics 77(November 1995):825–36.CrossRefGoogle Scholar
Cummings, R.G., Harrison, G.W., and Rut-str, E.E.öm. “Homegrown Values and Hypothetical Surveys: Is the Dichotomous Choice Approach Incentive-Compatible?” American Economic Review 85(March 1995):260–66.Google Scholar
Darby, P. “Analysis of the Feasibility of a Value-Added Retail/Wholesale Beef Marketing Cooperative in Mississippi.” Final Report Submitted to Commissioner, Mississippi Department of Agriculture and Commerce, March 2002.Google Scholar
Food Marketing Institute. “Consumer Corner.” Supermarket Research 8(November/December 2002a):1–2.Google Scholar
Food Marketing Institute. Facts and Figures. Various tables and figures. (2002b). Internet site: http://www.fmi.org/facts_figs/keyfacts/ (Accessed November 2002).Google Scholar
Fox, J.A., Shogren, J.F., Hayes, D.J., and Klie-benstein, J.B.. “CVM-X: Calibrating Contingent Values with Experimental Auction Markets.” American Journal of Agricultural Economics 80(August 1998):455–65.CrossRefGoogle Scholar
Grannis, J., Thilmany, D., and Sparling, E.. “Shopping for Meat: Empirical Demand Estimation for Natural Beef Across Store Choices.” Paper presented at the Western Agricultural Economics Association annual meeting, Logan, UT, July 2001.Google Scholar
Greene, W.H.Econometric Analysis, 4th ed. Upper Saddle River, NJ: Prentice Hall, 2000.Google Scholar
Lancaster, K. “A New Approach to Consumer Theory.” Journal of Political Economy 74(April 1966):132–57.CrossRefGoogle Scholar
Layton, D.E., and Brown, G.. “Heterogeneous Preferences Regarding Global Climate Change.” The Review of Economics and Statistics 82(November 2000):616–24.CrossRefGoogle Scholar
Louviere, J.J., Hensher, D.A., and Swait, J.D.. Stated Choice Methods: Analysis and Application. Cambridge: Cambridge University Press, 2000.CrossRefGoogle Scholar
Lusk, J.L. “Branded Beef. Is It What's For Dinner?” Choices 2nd Quarter(2001):27–30.Google Scholar
Lusk, J.L., Roosen, J., and Fox, J.A.. “Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States.” American Journal of Agricultural Economics 85(February 2003):16–29.CrossRefGoogle Scholar
Lusk, J.L., and Schroeder, T.C.. “Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steak.” American Journal of Agricultural Economics, in press.Google Scholar
Medina, S., and Ward, R.W.. “A Model of Retail Outlet Selection for Beef.” International Food and Agribusiness Management Review 2(1999):195–219.CrossRefGoogle Scholar
Sexton, R.J. “Industrialization and Consolidation in the U.S. Food Sector: Implications for Competition and Welfare.” American Journal of Agricultural Economics 82(2000):1087–1104.CrossRefGoogle Scholar
Unterschultz, J., Quarainie, K.K., Veeman, M., and Kim, R.B.. “South Korean Hotel Meat Buyers’ Perceptions of Australian, Canadian, and U.S. Beef.” Canadian Journal of Agricultural Economics 46(March 1998):53–68.CrossRefGoogle Scholar