Restaurants’ Willingness to Pay for Tennessee Certified Beef

Tennessee beef producers and consumers have shown interest in a Tennessee Certified Beef (TCB) Program. Restaurants serving local foods may serve as an important outlet for TCB but there is no knowledge on how restaurants perceive TCB and willingness to pay (WTP) for TCB. Therefore, this study examines restaurants’ WTP for TCB ground beef and sirloin steak. A telephone survey of 150 Tennessee restaurants that offer locally sourced foods and beef was conducted in which the primary decision maker was asked contingent valuation questions to determine their WTP for TCB. A probit model was used to determine the factors affecting restaurants’ decision to purchase TCB. Results show that the TCB price had a significant impact on restaurants’ decision to adopt TCB. Preliminary results indicate if restaurants were already sourcing beef directly from a producer, selling local foods, and offering beef with no hormones added, they were more likely to indicate they would purchase TCB ground beef. Restaurants were more likely to indicate they would purchase TCB sirloin steak if they already offered beef with no antibiotics administered, natural beef, local beef, and believed offering TCB would make the restaurant more profitable. This research provides recommendations on the premium producers could receive for a TCB product purchased by restaurants as well as the business attributes of restaurants interested in providing such a product.

Issue Date:
Jan 16 2018
Publication Type:
Conference Paper/ Presentation
Record Identifier:
Total Pages:
JEL Codes:
Series Statement:
SAEA 2018

 Record created 2018-01-17, last modified 2018-01-22

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