The spread of bovine spongiform encephalopathy (BSE) in Europe has induced EU policy makers to implement a mandatory traceability and labeling system in the beef supply chain. This paper analyzes consumer and retailer attitudes toward this system. Data used in the study were collected through two surveys of consumers and retailers in the province of Aragón, Spain, in 2002. Consumer and retailer attitudes toward beef traceability are examined to identify main underlying factors. Using these factors, consumers and retailers are segmented into homogenous groups according to their attitudes toward traceability for beef. Results indicate that both consumers and retailers highly value the positive aspects related to the traceability and labeling system for beef, and they value the possible disadvantages to a lesser extent.