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Abstract
Consumer demand for forage- or grass-finished beef is rapidly emerging in the US.
This research uses data elicited from consumer surveys and experimental auctions to
provide insight on product attributes (taste/flavour, credence and nutritional characteristics)
and socio-demographic factors that are most important in determining US
consumers’ preferences and willingness to pay premiums for grass-finished versus
grain-finished beef. Information related to beef production processes increased the
probability consumers would be willing to pay a premium for grass-fed beef. However,
it appears that health-related messages are more important drivers of willingnessto-
pay, on average, than the absence of antibiotics and supplemental hormones and
traceability. Labelling information regarding grass-fed beef’s nutritional content and
related production processes is vital for maintaining and growing premium niche
markets for grass-fed beef in the US. The relative size of the willingness to pay estimates
compared to previous cost estimates suggest that the Australian beef industry
may have a comparative advantage for finishing beef on forage and marketing
premium grass-fed differentiated beef products in the US market.