Consumer Preference and Willingness to Pay for U.S. versus Australian and Canadian Beef

Abstract

Consumers from Chicago and Denver participated in an experimental auction and taste panel to elicit preferences for beef originating from the United States, Australia, and Canada. On average, consumers were willing to pay premiums of 31% and 10% more for the U.S. steak than for the Australian and Canadian steaks, respectively. However, it appears that a segment of the population prefers the taste and is willing to pay a premium for beef originating from Australia. A larger segment of the experimental population (34% of the consumers) preferred the taste and was willing to pay a premium for the Canadian steak.