“The paper is one of the first to report differences/similarities in consumer preferences for use of growth hormones and biotechnology in food production in economic terms.”

The paper addresses consumer demand for the use of hormones and biotechnology in food production. Both issues are receiving a significant amount of attention domestically and abroad because of proposed changes in food labeling and trade policies; the results also have important implications for food marketers. The methodology used to elicit consumer preferences is also of increasing interest to economists.

The paper is one of the first to report differences/similarities in consumer preferences for use of growth hormones and biotechnology in food production in economic terms. The method used to elicit preferences, while not new, had been seldom used in this particular context: food and agriculture policy.

We find that consumers in France placed a higher value on beef from cattle that have not been administered added growth hormones than United States consumers; however, valuations of non-hormone-treated beef are statistically indistinguishable across Germany, the United Kingdom, and the United States. Results also indicate that European consumers place a much higher value on beef from cattle that have not been fed genetically modified corn than do United States consumers. Although not conclusive evidence, results lend credence to the notion that Europe’s relatively more stringent food labeling and trade policies have been beneficial to Europeans.

I had previously conducted work on consumer demand for particular attributes in meat products, but became interested in taking a more integrated approach that was able to investigate the multidimensional trade-offs consumers must make when making purchasing decisions. In the process, it became apparent that some consumers were interested in the manner in which animals were produced; not just the extrinsic quality characteristics of the product. These are the same issues, it so happens, over which the United States and Europe have had a number of disagreements in the World Trade Organization. Given that I had collaborators in Europe, the research was a natural extension of my previous work.