Mark Sperow

Determining consumer perceptions of and willingness to pay for Appalachian grass -fed beef: An experimental economics approach

The focus of the current study was on the market potential for grass-fed beef in the Appalachian region, given that these products embody observed, experiential, nutritional, and process attributes that may appeal to a large consumer base. An in-store variant of the Becker-DeGroot-Marschack experimental auction mechanism was employed in the region to determine consumer preferences and willingness to pay. A majority of respondents preferred the grass-fed product over conventional grain-fed samples and were willing to pay a price premium to obtain it. Preferences for grass-fed were rooted largely in the associated superior nutritional content and core observed attributes.

Stochastic Simulation of Pasture-Raised Beef Production Systems and Implications for the Appalachian Cow-Calf Sector

ABSTRACT Cow-calf enterprises provide significant opportunity for supplemental income to small-scale farmers in Appalachia, despite considerable production and economic uncertainty. To assess the viability of pasture-raised beef systems as alternatives to conventional production and marketing paradigms, stochastic budgets representative of several hypothetical producers of each type were constructed and evaluated via Monte Carlo techniques in terms of relative profitability and risk. Statistical distributions were utilized to capture seasonal variability in output prices, pasture availability and animal performance. Results suggest that the intensive pasture and animal management required for pasture-raised production yield greater profit and less economic risk than conventional strategies.