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.
TENNESSEE BEEF PRODUCERS' WILLINGNESS TO PARTICIPATE IN A STATE-BRANDED BEEF PROGRAM
Abstract Tennessee cattle producer willingness to participate in a hypothetical Tennessee Branded Beef Program (TBBP) was examined using 2016 survey data. Willingness to participate in the TBBP was modeled using a probit model. Among those willing to participate, a Tobit model was used to estimate the pounds of live-weight beef producers were willing to supply into a TBBP. Age, production practices, and risk attitudes influenced willingness to participate. Among those willing to participate, projected TBBP supply per farm averaged 32,329 pounds and was influenced by on-farm animal units, production practices, perceived barriers, risk attitudes, and consequentiality beliefs.
A New Brand of Agriculture: Farmer-Owned Brands Reward Innovation
Commodity agriculture as currently practiced in the U.S. Midwest is an extremely efficient way of organizing production and distribution. It allows for inexpensive production and bulk transfer of huge quantities of meat and grain and has resulted in enormous cost savings to U.S. and international consumers. This system has evolved in accordance with market forces, and we expect that these same forces will allow the current system to survive for decades.There are aspects of the commodity system, however, that are not desirable. For example, the commingling that occurs to take advantage of bulk handling means that signals cannot be sent from consumers to producers. Consumers might desire food products that are different from the commodity standard and they might be willing to pay a premium, but the farmer does not get this signal.(This abstract was borrowed from another version of this item.)