Attributes Preferred and Premiums Offered for Naturally Produced Beef Cattle

Abstract

A growing number of beef cattle producers in the US are using limited information to determine whether or not it would be economical for them to grow naturally produced cattle. The objective was to discover the attributes that marketing companies prefer for the naturally produced cattle they purchase, and to elicit the price premiums being offered for cattle that possess these attributes. Results of a phone survey of companies that purchase natural cattle show that 27 out of 32 companies report their willingness to pay a premium of $5.95/cwt for cattle that have never received antibiotics, ionophores, hormones or animal by-products.Key words: attributes, beef, cattle, naturally produced, premiums, Agribusiness, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries, Marketing,