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Factors Influencing Demand for a Producer-Owned Beef Retail Outlet

Published online by Cambridge University Press:  28 April 2015

Jayson L. Lusk  and
Edgar Cevallos
Jayson L. Lusk
Affiliation:
Department of Agricultural Economics, Purdue University, West Lafayette, IN
Edgar Cevallos
Affiliation:
Department of Agricultural Economics, Mississippi State University, Mississippi State, MS
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Abstract

As the farm-to-retail price spread continues to grow, some cattle producers are beginning to consider integrating into the retail sector. Such a venture would require large investments in capital with uncertain return. This study seeks to determine the potential success of a stand-alone retail outlet selling “all natural” beef in an affluent area of Jackson, MS. Using choice-based conjoint analysis, demand for the new retail outlet is modeled as a function of the beef price at the store, distance of the store from consumers' homes, distance of the store from consumers' typical grocery store, and price of beef at substitute grocery stores. Simulation results suggest the proposed outlet could be a profitable venture, depending upon location and beef price.

Keywords

beefconjointdemandretail outletQ13D12D4M31
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 1 , April 2004 , pp. 97 - 111
Copyright
Copyright © Southern Agricultural Economics Association 2004

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