Promoting the development of economically and ecologically sustainable pasture-fed beef markets

2008 Annual Report for LS06-191

Project Type: Research and Education
Funds awarded in 2006: $198,652.00
Projected End Date: 12/31/2009
Region: Southern
State: Virginia
Principal Investigator:
Denise Mainville
Department of Agricultural & Applied Economics

Promoting the development of economically and ecologically sustainable pasture-fed beef markets

Summary

The PFB research project made significant progress in 2008. Data from the producer survey was submitted for review and finalized as extension publications and is now in press for public release in spring 2009. Objective 1 was completed, and data for objectives 2, 3, and 4 was collected and analyzed. One referred extension publication has been released from the research on objective 2, and two professional conference presentations were made from research on objectives 3 and 4. More specific detail is provided below.

Objectives/Performance Targets

Objective 1: Identify and describe economic/financial properties of alternative PFB systems using different levels of off-farm resources, and how their product is valued by consumers.

Objective 2: Map the structure of the PFB marketing channels currently in use, and identify constraints and inefficiencies that currently constrain the market or will likely impede its expansion.

Objective 3: Analyze the potential for diverse retail and food service outlets to participate in PFB markets, and requirements for sales through these markets;

Objective 4: Analyze preferences and demand for PFB among growing Latin American, Asian, and European populations.

Objective 5: Extend results of research through educational programs to producers and dissemination of research results through extension, industry and professional outlets.

Accomplishments/Milestones

Objective 1: Identify and describe economic/financial properties of alternative PFB systems using different levels of off-farm resources, and how their product is valued by consumers.

1. Characterization of PFB producers in Virginia through a farm survey;  
Bradley Webb, a Master’s degree student in Agricultural & Applied Economics, completed the analysis of the farm survey data as well as an analysis of the financial properties of pasture-fed beef farms. The following publications and educational materials are forthcoming from his master’s research:
Two Virginia Cooperative Extension publications, currently in-press for public release in spring 2009 “A Characterization of Direct Marketed Beef Production in Virginia” and “A Characterization of Direct Marketed Beef Processing and Marketing in Virginia.” Authors include co-PIs Mainville and Groover as well as graduate students Ashleigh Waddle and Bradley Webb.
A refereed journal publication characterizing pasture-fed beef producers using cluster analysis will be prepared and submitted in summer 2009.

Objective 2: Map the structure of the PFB marketing channels currently in use, and identify constraints and inefficiencies that currently constrain the market or will likely impede its expansion.

The research underlying this objective has been completed and analysis and write-up of the results is also in its final stages. A survey of beef processors available for direct marketers of beef (including pasture-finished beef producers) in Virginia was conducted to ascertain the availability and distribution of processing facilities. A publication was released through Virginia Cooperative Extension titled “An Inventory of Slaughter and Processing Facilities for Virginia Direct Marketers of Beef” (available at http://www.ext.vt.edu/pubs/agecon/448-195/448-195.pdf) and co-authored by PI Mainville and graduate student Ashleigh Waddle. This publication has been very well-received by beef producers as well as professionals in Extension and the Department of Agriculture. A final report of the results of this research will be prepared in summer 2009.

Objective 3: Analyze the potential for diverse retail and food service outlets to participate in PFB markets, and requirements for sales through these markets;

Master’s degree student Ashleigh Waddle undertook this portion of the research for her thesis work and has completed surveys of supermarkets, natural food stores, restaurants and direct marketers of beef. She is currently writing up the results of this research and will defend her thesis (which will contain complete results from this objective) in May 2009. The thesis will then be revised for release as a refereed extension publication and/or refereed journal article.

Objective 4: Analyze preferences and demand for PFB among growing Latin American, Asian, and European populations.

Doctoral student, Jie Luo, collected data on demand among Hispanic consumers during September and October 2008. She completed written surveys, taste tests and visual evaluations with a total of 238 respondents. She also completed willingness to pay experiments with a total of 147 respondents (those who preferred pasture-finished beef). She is currently analyzing the data and will complete the analysis and write-up of results during summer 2009.

Objective 5: Extend results of research through educational programs to producers and dissemination of research results through extension, industry and professional outlets.  

In January 2008 results from the producer survey were presented during an in-service training to Virginia Cooperative Extension agents and discussion was made of the economics of pasture-fed beef production with agents taking away key points on the salient issues in producing and marketing pasture-fed beef from a farm-business perspective.

An educational workshop on direct marketing beef (broadened from pasture-finished only to include people who might be interested in marketing organic or natural beef as well, as many of the same issues are at play) was offered in February 2008. Turnout was much larger than expected (approximately 50) with a notable presence of traditional (conventional) beef farmers who are interested in diversifying. The workshop itself was funded through a Risk Management Education grant however this is worth noting as a SARE project output also as the research provided in the workshop was largely developed using SARE project resources.

Several additional educational and research publications, described above, are currently being prepared for publication and will be submitted by the end of summer 2009.

Impacts and Contributions/Outcomes

Producers have benefited from educational programming about the economic characteristics of PFB production and marketing, enabling them to make better decisions about investing in the market.

Producers have gained access to information about processing options, a noted bottleneck, thus reducing their costs of participating in the marketing and enhancing their options.

Producers and other professionals have participated in educational programming about the alternative market outlets and what potential each holds, requirements to participate and particular challenges that Virginia producers might face in trying to enter each market.

Preliminary information about Hispanic markets has been disseminated to producers who are interested in possibly targeting these markets.

Collaborators:

Gordon Groover

xgrover@vt.edu
Instructor
Department of Agricultural & Applied Economics
Mail code 0401
Virgina Tech
Blacksburg, VA 24061
Office Phone: 5402315850
Kenner Love

klove@vt.edu
Extension Agent
Virginia Cooperative Extension
Office Phone: 5406753619
Corey Childs

cchilds@vt.edu
Extension Agent
Virginia Cooperative Extension
Office Phone: 7037770373
Tom Stanley

stanleyt@vt.edu
Extension Agent
Virginia Cooperative Extension
Office Phone: 5402455750
Susan Duncan

duncans@vt.edu
Professor
Department of Food Science & Technology
Virginia Tech
Blacksburg, VA 24061
Office Phone: 5402318675