4.5 Article

Market Evidence of Packer Willingness to Pay for Traceability

Journal

AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS
Volume 93, Issue 3, Pages 735-751

Publisher

OXFORD UNIV PRESS INC
DOI: 10.1093/ajae/aar019

Keywords

beef; cattle; packer; premium; quality; traceability; D22; L15; Q18

Funding

  1. Agricultural Marketing Research Center
  2. Department of Homeland Security - National Center for Food Protection and Defense
  3. Social Sciences and Humanities Research Council of Canada

Ask authors/readers for more resources

This article measures the willingness to pay for the traceability of steers. I use data on the price of steers in Quebec and Ontario to identify a demand shifter in a hedonic framework. I estimate error correction models to provide the first market-based econometric estimates of the willingness to pay for traceability. My best assessment is that a premium between C$0.02 and C$0.05 per pound of carcass (between 1.2% and 3.1%) is paid for traceable steers.

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