Source: MICHIGAN STATE UNIV submitted to
IDENTIFICATION, UNDERSTANDING, AND IMPLICATION OF CONSUMER FOOD PREFERENCES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
TERMINATED
Funding Source
Reporting Frequency
Annual
Accession No.
0213267
Grant No.
(N/A)
Project No.
MICL02159
Proposal No.
(N/A)
Multistate No.
(N/A)
Program Code
(N/A)
Project Start Date
Jan 1, 2008
Project End Date
Dec 31, 2012
Grant Year
(N/A)
Project Director
Tonsor, G. T.
Recipient Organization
MICHIGAN STATE UNIV
(N/A)
EAST LANSING,MI 48824
Performing Department
AGRICULTURAL, FOOD & RESOURCE ECONOMICS
Non Technical Summary
The underlying focus of this project is to identify and understand consumer preferences for their food and evaluate associated implications for U.S. food industries, with particular focus on meat production. Michigan, U.S. and international food markets are experiencing unprecedented change. Concerns over animal health, potential bio-terrorism, food safety, international trade, consumer demand for credence attributes, and improving supply chain management are forcing an array of changes in producing, processing, and distributing Americas food. Of core importance is a sound understanding of how these concerns originate and what methods are economically effective at mitigating such concerns. Furthermore, significant improvement in the identification of diversity or heterogeneity among consumers is needed. That is, consumer concerns, beliefs, and resulting behavior with respect to food consumption are known to be heterogeneous. Only recently has research begun to appropriately consider this underlying consumer heterogeneity in analyzing observed consumer behavior and subsequently in developing recommendations for industry and policy makers. Internationally, food industries are responding to the concerns list above in a multitude of ways. Each of these response strategies are chosen as being economically appropriate in addressing perceived needs. However, significant room for improvement in overall understanding of actual economic appropriateness is needed. This pressing need is one core foundation of this project.
Animal Health Component
20%
Research Effort Categories
Basic
50%
Applied
50%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
7033320301010%
7033520301010%
6013320301050%
6033520301010%
6043320301010%
6073520301010%
Goals / Objectives
The underlying focus of this project is to identify and understand consumer preferences for their food and evaluate associated implications for U.S. food industries, with particular focus on meat production. Michigan, U.S. and international food markets are experiencing unprecedented change. Concerns over animal health, potential bio-terrorism, food safety, international trade, consumer demand for credence attributes, and improving supply chain management are forcing an array of changes in producing, processing, and distributing Americas food. Of core importance is a sound understanding of how these concerns originate and what methods are economically effective at mitigating such concerns. Furthermore, significant improvement in the identification of diversity or heterogeneity among consumers is needed. That is, consumer concerns, beliefs, and resulting behavior with respect to food consumption are known to be heterogeneous. Only recently has research begun to appropriately consider this underlying consumer heterogeneity in analyzing observed consumer behavior and subsequently in developing recommendations for industry and policy makers. Internationally, food industries are responding to the concerns list above in a multitude of ways. Each of these response strategies are chosen as being economically appropriate in addressing perceived needs. However, significant room for improvement in overall understanding of actual economic appropriateness is needed. This pressing need is one core foundation of this project. The over-riding objective of this project is to expand understanding of consumer preferences for their food and evaluate associated economic implications for U.S. food industries, with particular focus on meat production. In thoroughly addressing this main objective, contribution will be made to a set of broad categories of economic research, including agricultural marketing, price analysis, risk management, heterogeneity of consumer preferences, and supply chain management. Some more specific objectives include: Investigate current and future status of consumer preferences, perceptions, and behavior with respect to food products (with a particular emphasis on meat products); Identify sources of influence in shaping current consumer preferences, perceptions, and behavior as well as sources most likely to be economically viable in adjusting future preferences, perceptions, and behavior of food consumers; Examine implications on food industries, both in aggregate and at stages throughout supply chains, of increased understanding of today and tomorrows food consumers.
Project Methods
An assortment of methods will be utilized in meeting the objectives of this project. A common approach used will include utilizing intense survey and/or experimental economic methodologies with consumers, producers, and/or industry personnel that obtain individual-level or micro data necessary to address an array of individual research questions underlying the broader themes of this project. For instance, a significant portion of the Principal Investigators (PI) work to date (e.g., Schroeder et al.; Tonsor et al. (2005); Tonsor et al. (2007)) has gathered data from consumers in the form of surveys and choice experiments, analyzed the data with appropriate and modern empirical modeling techniques, and developed resulting implications and possible strategies for associated food industries. This approach will be common in many of the PIs future research projects. A second research approach is to utilize macro or more aggregated data to address research questions of interest. A past example of this is Tonsor and Marshs work that utilized national meat and fish consumption data from U.S. and Japanese consumers to investigated changes and relative differences in consumer demand. Another example is Tonsor and Featherstones analysis regarding sources and implications of increasing specialization in the U.S. hog industry. A third research approach that will be employed is the use of research trips or on-site studies to obtain a better qualitative understanding of underlying forces causing adjustment in the food industry. This approach typically doesnt result in a data set rich enough for empirical analyzes. Conversely, the information obtain is useful in keeping researchers (and associated audiences of research presentations) more current on industry changes and lends itself well to output more in the form of case studies. Past examples utilizing this approach include research trips the PI has taken to Australia and Brazil. Referenced examples of published output stemming from this approach include Tonsor and Schroeder; and Schroeder and Tonsor.

Progress 01/01/08 to 12/31/12

Outputs
OUTPUTS: This project corresponds with several aspects of Tonsor's integrated applied research and active outreach program. Of particular focus are aspects tied to how consumer preferences and perceptions shape modern livestock industries. Key outputs and dissemination activities over the life of this project include: multiple publications and outreach presentations. A series of online postings of research findings has been made on both Michigan State University and Kansas State University websites. PARTICIPANTS: Nicole Olynk, Domenico Dentoni, Roger Calantone, Chris Peterson, Chris Wolf, Allen Featherstone, Lee Schulz, Dustin Pendell, Gary Brester, Ted Schroeder, Kevin Dhuyvetter, James Mintert, Robert Shupp, Joost Pennings, Tom Marsh TARGET AUDIENCES: Target audiences included academic, industry, and policy personnel involved in shaping discussions on economic issues relevant to U.S. livestock producers. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Key impacts include building a national repuation as a resource on issues related to this project. One point of evidence on the impact of this project (and success in building this reputation) is my being part of the award winning paper (which fits this project): USMEF Eric Choon Memorial Research Award for 2009: Schroeder et al. (2007) article in The B.E. Journal of Economic Analysis & Policy.

Publications

  • Olynk, N., C.Wolf, and G.T. Tonsor. Labeling of Credence Attributes in Livestock Production: Verifying Attributes which are More than Meet the Eye. Journal of Food Law & Policy. Forthcoming. Dentoni, D., G.T. Tonsor, R. Calantone, and C. Peterson. (2009). The Direct and Indirect Effect of Credence Attributes on Consumers Attitudes towards Agri-Food Products. Agricultural and Resource Economics Review. 38:384-396. Tonsor, G.T., N. Olynk, and C. Wolf. (2009). Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates. Journal of Agricultural and Applied Economics. 41:713-730. Tonsor, G.T., C. Wolf, and N. Olynk. (2009). Consumer Voting and Demand Behavior Regarding Swine Gestation Crates. Food Policy. 34:492-498. Tonsor, G.T. and A.M. Featherstone. (2009). Production Efficiency of Specialized Swine Producers. Review of Agricultural Economics. 31:493-510. Schulz, L. and G.T. Tonsor. Cow-Calf Producer Perceptions Regarding Individual Animal Traceability. Journal of Agricultural and Applied Economics. Forthcoming. Pendell, D., G. Brester, T. Schroeder, K. Dhuyvetter, and G.T. Tonsor. Animal Identification and Tracing in the United States. American Journal of Agricultural Economics. Forthcoming. Tonsor, G.T., J. Mintert, and T.C. Schroeder. U.S. Meat Demand: Household Dynamics and Media Information Impacts. Journal of Agricultural and Resource Economics. Forthcoming. Tonsor, G.T. and T.C. Schroeder. Multivariate Forecasting of a Commodity Portfolio: Application to Cattle Feeding Margins and Risk. Applied Economics. Forthcoming. Schulz, L. and G.T. Tonsor. (2010). Cow-Calf Producer Preferences for Voluntary Traceability Systems. Journal of Agricultural Economics. 61:138-162. Tonsor, G.T. and R. Shupp. (2009). Valuations of Sustainably Produced Labels on Beef, Tomato, and Apple Products. Agricultural and Resource Economics Review. 38:371-383. Tonsor, G.T., T.C. Schroeder, and J.M.E. Pennings. (2009). Factors Impacting Food Safety Risk Perceptions. Journal of Agricultural Economics. 60:625-644. Tonsor, G.T., T.C. Schroeder, J.M.E. Pennings, and J. Mintert. (2009).Consumer Valuations of Beef Steak Food Safety Enhancements in Canada, Japan, Mexico, and the United States. Canadian Journal of Agricultural Economics. 57:395-416. Schroeder, T.C., G.T. Tonsor, J.M.E. Pennings, and J. Mintert (2007). Consumer Food Safety Risk Perceptions and Attitudes: Impacts on Beef Consumption across Countries. The B.E. Journal of Economic Analysis & Policy. Vol. 7: Iss. 1(Contributions): Article 65. Tonsor, G.T. and T.L. Marsh. (2007). Comparing Heterogeneous Consumption in US and Japanese Meat and Fish Demand. Agricultural Economics. 37:81-91.


Progress 01/01/09 to 12/31/09

Outputs
OUTPUTS: My work on the economic impacts of animal welfare legislation and consumer demands contributes to multiple mission functions of the university as sound research and evaluation underlie the message I have delivered through multiple outreach endeavors. During 2009 I gave at total of 14 extension/outreach presentations with a total audience of approximately 735 producers and interested stakeholders.  I had 6 peer-reviewed journal articles and 5 producer-targeted extension bulletins/fact sheets published in 2009. I serve as the President for the Australian Agricultural Resource Economics Society (AARES) North American Branch (2009-2010).   I am a member of Western Association of Agricultural Experiment Station Directors project: "Enhancing the Competitiveness and Value of U.S. Beef" (W-2177).  PARTICIPANTS: Co-Authors: Biere, A. Black, R. Dhuyvetter, K.C. Featherstone, A.M. Fox, J.A. Jones, C. Kastens, T. Marsh, T.L. Mintert, J. Olynk, N. Pendell, D.L. Pennings, J.M.E. Rust, S. Schroeder, T.C. Schulz, L. Wolf, C. Collaborators: Black, R. Blasi, D. Brester, G.W. Buskirk, D. Dhuyvetter, K.C. Hilker, J. Lusk, J. Mintert, J. Olynk, N. Pendell, D.L. Pennings, J.M.E. Piggott, N. Pofahl, G. Rust, S. Schroeder, T.C. Schulz, L. Shupp, R. Smith, G.C. Stroade, J. Taylor, M. Todd, E. Wolf, C. Worosz, M. Advisees/Advisors: Casey, B. Chaudhuri, M. Dentoni, D. Jones, C. Kizito, A. Lewis, K. Schroeder, T.C. Schulz, L. Partner organizations: Michigan State University AoE Beef, Pork, and FIRM teams; Michigan State University Extension; Michigan Agricultural Experiment Station; Michigan Cattlemen's Association; Michigan Pork Producers Association; TARGET AUDIENCES: The target audience for this project primarily includes consumers and producers in Michigan, the U.S., and internationally that are impacted by issues addressed in my program heavily focused on the livestock value chain. Principal industries of emphasis are the beef (cattle) and pork (swine) industries. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
The outcomes of my work range from examples with immediate impact to examples where the impact will not be known for some time. Examples of changes in knowledge from my MAES project are the development of new applied knowledge in the realm of 1) consumer knowledge, perceptions, and preferences related to animal welfare; and 2) producer preferences and costs of adjustment to changing animal welfare practices. Each of these "examples of knowledge change" have further resulted in changes in actions as I have disseminated this information to stakeholders through use of my own website, outreach presentations, and extension publications. Finally, I note changes in conditions that results from this work include a continued enhancement in the perceived quality and food safety of our nation's food supply.

Publications

  • Tonsor, G.T., C. Wolf, and N. Olynk. (2009). "Consumer Voting and Demand Behavior Regarding Swine Gestation Crates." Food Policy. 34:492-498.
  • Tonsor, G.T. and A.M. Featherstone. (2009). "Production Efficiency of Specialized Swine Producers." Review of Agricultural Economics. 31:493-510.
  • Tonsor, G.T., T.C. Schroeder, and J.M.E. Pennings. (2009). "Factors Impacting Food Safety Risk Perceptions." Journal of Agricultural Economics. 60:625-644.
  • Tonsor, G.T., T.C. Schroeder, J.M.E. Pennings, and J. Mintert. (2009). "Consumer Valuations of Beef Steak Food Safety Enhancements in Canada, Japan, Mexico, and the United States." Canadian Journal of Agricultural Economics. 57:395-416.
  • Tonsor, G.T. and T. Kastens. (2009). "Do Starting Values Really Matter Development of a Genetic Algorithm Approach." Applied Economics Letters. 16:781-784.
  • Tonsor, G.T. "Production Efficiency of Specialized Swine Producers." Michigan State University Pork Quarterly. 14:3(2009):4-5.
  • Tonsor, G.T. "Pork Demand Determinants." Michigan State University Pork Quarterly. 14:2(2009):4.
  • NAIS Benefit-Cost Research Team. Benefit-Cost Analysis of the National Animal Identification System. Final Research Report Submitted to U.S. Department of Agriculture, Animal and Plant Health Inspection Service. January 2009.
  • Tonsor, G.T. "USDA Surveillance of Animal Handling at Auction and Processing Facilities." Michigan State University Pork Quarterly. 14:1(2009):1-2.
  • Tonsor, G.T., N. Olynk, and C. Wolf. (2009). "Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates." Journal of Agricultural and Applied Economics. 41:713-730.
  • G. T. Tonsor, J. Mintert, and T. Schroeder. "U.S. Beef Demand Drivers and Enhancement Opportunities." Kansas State University, MF-2893. 2009.
  • Mintert, J., G. Tonsor, and T. Schroeder. "U.S. Beef Demand Drivers and Enhancement Opportunities: A Research Summary." Kansas State University, MF-2876. 2009.
  • Gauldin, C. "Food Animal Industry Awaits Ohio Results." Feedstuffs. 81(44) (October 26, 2009).
  • Gauldin, C. "National Poll Shows Support for Stall Ban." Feedstuffs. 81(20) (May 18, 2009). Also reprinted in Michigan Farm News. Vol. 86, No. 10.
  • Pofhal, G.M., T.J. Richards, and G.T. Tonsor. "Valuation of New Products in the Face of Consumer Income Disparity." Selected paper at 2009 American Agricultural Economics Association Annual Meeting, Milwaukee, WI.
  • G.T. Tonsor, N. Olynk, and C. Wolf. "Media Coverage of Animal Handling and Welfare: Influence on Meat Demand." Selected paper at 2009 American Agricultural Economics Association Annual Meeting, Milwaukee, WI.
  • Tonsor, G.T. and C. Wolf. "Consumer Use, Perceptions, and Demand Impacts of Alternative Animal Welfare Information Sources." Paper presented at 2009 American Agricultural Economics Association Annual Meeting, Milwaukee, WI; Organized Symposium Session.
  • Tonsor, G.T. and R. Shupp. "Valuations of `Sustainably Produced' Labels on Beef, Tomato, and Apple Products." Paper presented at 2009 FAMPS Meeting, San Diego, CA.
  • Tonsor, G.T. and C. Wolf. "USDA Surveillance of Animal Handling at Auction and Processing Facilities." Paper presented at 2009 FAMPS Meeting, San Diego, CA.


Progress 01/01/08 to 12/31/08

Outputs
OUTPUTS: I continue my efforts, particularly with the MSUE AoE Pork and Beef teams, to enhance evaluation efforts following each extension meeting. In particular, I utilize "clicker-technology" in which each attendee can "vote" to multiple choice questions I pose in my PowerPoint presentations. This technology is used to evaluate entire meetings, enhance participation during my particular presentation, and solicit additional information regarding diversity and representativeness of attendees. My work on the economic impacts of animal welfare legislation and consumer demands contributes to multiple mission functions of the university as sound research and evaluation underlie the message I have delivered through multiple outreach endeavors. During 2008 I gave at total of 17 extension/outreach presentations with a total audience of approximately 743 producers and interested stakeholders.  I currently serve as the President for the Australian Agricultural Resource Economics Society (AARES) North American Branch (2009-2010).   I am a member of Western Association of Agricultural Experiment Station Directors project: "Enhancing the Competitiveness and Value of U.S. Beef" (W-2177).  PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: The target audience for this project primarily includes consumers and producers in Michigan, the U.S., and internationally that are impacted by issues addressed in my program heavily focused on the livestock value chain. Principal industries of emphasis are the beef (cattle) and pork (swine) industries. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
The outcomes of my work range from examples with immediate impact to examples where the impact will not be known for some time. Examples of changes in knowledge from my MAES project are the development of new applied knowledge in the realm of 1) consumer knowledge, perceptions, and preferences related to animal welfare; and 2) producer preferences and costs of adjustment to changing animal welfare practices. Each of these "examples of knowledge change" have further resulted in changes in actions as I have disseminated this information to stakeholders through use of my own website, outreach presentations, and extension publications. Finally, I note changes in conditions that results from this work include a continued enhancement in the perceived quality and food safety of our nation's food supply.

Publications

  • Schulz, L. and G.T. Tonsor ID Feedback. BEEF Magazine. August 1, 2008. Available at: http://beefmagazine.com/sectors/cow-calf/0801-survey-id-feedback/.
  • Tonsor, G.T. Michigan Producer Perceptions of Gestation Stall Pressures. Michigan State University Pork Quarterly. 13:2(2008):1-3.
  • Tonsor, G.T. Michigan Consumer Gestation Stall Perceptions and Preferences. Michigan State University Pork Quarterly. 13:2(2008):4-5.
  • Tonsor, G.T. Hog Enterprise Price Analysis Excel Tool. Michigan State University Pork Quarterly. 13:2(2008):12. Excel spreadsheet and instructions available at: https://www.msu.edu/user/gtonsor/DecisionTools.html
  • Tonsor, G. Age and Source Verification. Michigan State University Cattle Call. 13:3(2008):4-5.
  • Tonsor, G.T. and K.C. Dhuyvetter. Sow Management: How Many Litters/Sows Should I be Targeting. Michigan State University Pork Quarterly. 13:1(2008):1-3.
  • Tonsor, G., S. Rust., and R. Black. Optimal Use of Distillers Grains in Feedlot Rations: An Economic Perspective. Michigan State University Cattle Call. 13:2(2008):1-2.
  • Tonsor, G.T., N. Olynk, and C. Wolf. Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates. Paper presented at 2008 American Agricultural Economics Association Annual Meeting, Orlando, FL.
  • Tonsor, G.T., T. Schroeder, and J. Pennings. Factors Impacting Food Safety Risk Attitudes and Perceptions. Paper presented at 2008 American Agricultural Economics Association Annual Meeting, Orlando, FL; FAMPS Session.
  • Tonsor, G.T. Government Benefits & Costs of NAIS. Paper presented at 2008 Western Agricultural Economics Association Annual Meeting, Big Sky, MT.
  • Tonsor, G.T.. Hedging in Presence of Market Access Risk. Paper presented at 2008 NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management. St. Louis, MO.