Unlocking the monetary value: investigating the importance of quality information in Australian red meat chains
Yue Zhang
A * , Nam Hoang A , Derek Baker A , Emilio Morales A and Garry Griffith A B
A
B
Abstract
This study assesses the monetary value of product quality information, specifically feedback from slaughter and production methods, within the Australian beef and sheep meat supply chains.
The primary objective was to investigate the value assigned by supply chain actors to product quality information, measured as willingness to pay for receiving it or willingness to accept payment for providing it. The study also aimed to explore how the value of this information varies based on information quality and quantity.
A contingent valuation approach was employed, utilising survey data from 104 producers. Logit models were used to identify the factors influencing meat producers’ willingness to accept payment and willingness to pay.
Over one-third of cattle and sheep producers expressed interest in receiving feedback from slaughter information and providing production methods information. Production methods information had the highest mean value at the premium information quality and quantity level, with values of AU$20.49/head in the beef industry and AU$10.13/head in the sheep industry. Conversely, feedback from slaughter information had the lowest mean value at the low information quality and quantity level, with values of AU$0.83/carcass in beef and AU$0.14/carcass in sheep. Farmers’ experience and education level significantly influenced their willingness to accept payment and willingness to pay for product quality information.
A significant proportion of producers within the Australian beef and sheep meat supply chains express a desire to provide or pay for product quality information. The value assigned to this information demonstrates a positive relationship with higher information quality and quantity. However, variations in expressed value of different information types, and the influence of farmer and farm characteristics, suggest the presence of chain failures that disrupt information valuation.
These findings have important implications for improving the performance of the red meat supply chains. Understanding the factors that influence the valuation of product quality information allows stakeholders to develop targeted strategies to enhance the efficiency and effectiveness of information exchange. This may involve addressing chain failures, and implementing measures to ensure consistent and accurate valuation of information. Ultimately, these improvements can contribute to enhanced decision-making processes and overall supply chain performance in the Australian beef and sheep meat industry.
Keywords: beef, carcase feedback, chain failure, contingent valuation, product quality information, sheep meat, supply chain, value of information, willingness to accept, willingness to pay.
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