A German consumer survey about pork purchases may be instructive for cattle producers by providing insight into the consumer psyche.
When purchasing pork, consumers appeared very interested in information about individual farms where the pigs were kept, animal health and welfare. They seem willing to pay more for this information, even if they didn’t read it, according to a survey of consumers by the German firm Wageningen Economic Research.
The survey results were posted on the Wageningen web site and are summarized here. The data showed consumers in the Netherlands, Germany and the UK primarily wanted accurate information on the way hogs were raised.
SOME NATIONALIST CONSIDERATIONS
More than half of Dutch consumers chose products with source information and a higher price tag. German and English consumers had roughly the same willingness to pay, but indications the product came from the Netherlands appeared to lower this willingness somewhat for Germans and Brits.
That willingness to pay amounted to around 13 eurocents per kilogram, roughly equal to the additional costs incurred by suppliers to guarantee the information was accurate.
The desire for information and willingness to pay were not related to incidents. Information on origin and environment scored lower, and consumers had little interest in how hogs were transported or slaughtered.
COMMUNICATING SOURCING INFORMATION
Sourcing information can best be communicated on the product or where it is purchased. Working with a QR code or an app scored low in all three of the countries, and few made the effort to seek out the information on a website.
However, consumers appreciated that the option was offered. This apparently gave consumers sufficient confidence to forgo looking up the information.
However, if consumers felt they were price-conscious buyers, the willingness to pay more for sourcing information decreased.
TRANSPARANCY IN THE SUPPLY CHAIN
Pork suppliers said they wanted to foster a positive image and consumer confidence by operating responsibly and carefully, securing working methods and proactively informing consumers. This was in line with what a large segment of consumers felt must be ensured.
The supply chain considered direct contact between consumers and hog farmers on open days and in viewing facilities to be the most suitable format for sharing information on the ins and outs of hog farms and the supply chain.
The drawback was that the number of consumers who are reached is limited. Supply chain parties also recognize the potential drawbacks of greater transparency, such as individual business owners becoming the targets of protest groups.
CATTLE, BEEF RECAP
On the Livestock Exchange Video Auction last Wednesday, 232 head of Nebraska cattle sold at $118 per cwt; 127 Kansas cattle sold at $117.59, and 59 head of Texas cattle sold at $114 with a 17- to 30-day delivery window. Cattle sold the previous Wednesday at $117 per cwt.
Early week cash cattle last week were at $117 to $118 per cwt on a live basis, the top of last week’s $115 to $118 trade. On Friday, they were up to $118 to $120 in Kansas and $121 to $122 in Nebraska. Dressed-basis trading was at $190, steady to down $2 from the previous week.
The USDA’s choice cutout Tuesday was up $0.34 per cwt at $212.13, while select was off $0.40 at $199.58. The choice/select spread widened to $12.55 from $11.81 with 104 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Monday, was $137.75 per cwt, up $0.16. This compares with Tuesday’s Apr settlement of $138.72, down $0.50.