Creating a Geographically Linked Brand for High-Quality Beef: A Case Study
Worldwide, a segment of consumers can afford to pay substantial price premiums for very high quality agricultural products with attributes those consumers value. At the same time, many U.S. farmers are producing these high-quality products but are not using market mechanisms that allow them to take fullest advantage of price premiums. This paper describes a pilot program developed to commercialize an origin-based collective brand for very high quality beef. We hypothesize that, if successful, the program would create potential for cattle producers to take fuller advantage of price premiums often captured elsewhere in the marketing channel. Specifically, the pilot program analyzed two mechanisms for differentiating and marketing very high quality beef: a certification mark (a type of U.S. trademark that links products to their geographic origin) and a USDA Process Verification Program (a federal program that allows producers to provide documented assurances to their customers that a stated set of minimum production standards are met). This paper describes how we identified target markets, defined product specifications and determined potential supply, protected property rights using the U.S. trademark system, prepared documentation for a USDA process verification program, and attempted to commercialize Iowa-80 Beef. We also discuss the costs and feasibility of small firms or producer groups obtaining and maintaining a certification mark and a process verification program. Finally, we discuss the challenges and lessons learned from attempting to brand and commercialize very high quality beef.
Country of Origin Labeling with Horizontal Differentiation and Cost Variability
This paper studies whether a seller achieves higher profits by providing consumers with information that allows them to distinguish between products from different countries, and how mandatory provision of such information impacts welfare. We analyze a model of multi-product monopoly with horizontal differentiation and random country-specific input costs. We find that if the variability in the input costs is sufficiently high and the share of consumers with high valuations is in some intermediate range, the seller prefers to withhold information about product origin. Mandatory labeling of products with their country of origin may reduce or increase welfare depending on the share of consumers with high valuations. We also discuss extensions of the basic model that allow for continuous distributions of valuations and input costs, and consumer learning.
The structure of electricity demand in the Brazilian household sector
Abstract The present structure of residential electricity demand is analysed by electricity consumption classes and end-uses. Nearly 70% of households consume less than 150 kWh/month and are responsible for 35% of total residential demand. Other determinants of electricity-use, such as income and place of residence, are also discussed. It is found that electricity demand is increasing faster than income as the country reaches appliances saturation in upper consumption levels. Water heating and refrigeration account for the major part of residential consumption. Residential conservation efforts have started introducing more efficient lighting equipment and refrigerators, but further work will have to be done to speed up the diffusion of efficient technology at costs that can be paid by consumers.