Various consumer perceptions exist about white and yellow beef fat. These perceptions subsequently affect the price of beef with yellow or white fat. Although only 25% of South African beef is grass-fed (yellow fat), lower prices offered for yellow fat result in farmers potentially receiving about R157.5 million less income per year. This study determined consumer preferences for beef fat colour in the Cape Town area of the Western Cape, South Africa. The largest percentage (43.74%) of consumers preferred white fat, followed by consumers (42.68%) to who fat colour did not matter and those who preferred yellow fat (13.59%). Analysis of the different consumer groups found that consumers who preferred yellow fat were buyers with higher education levels. These consumers were more concerned about the physical visual properties of the meat than about the branding, classification and packaging neatness. Consumers who preferred white fat had lower education levels, were more concerned about the packaging neatness and grade, and did not care much about the physical visual properties of the meat. Rather than discriminating against the price of yellow fat beef, a niche market could be created to accommodate this product.