Towards consumer-driven meat supply chains: opportunities and challenges for differentiation by taste

Abstract

AbstractThis paper investigates the state of pork supply as to its neglect of developing innovations and mechanisms for delivering superior eating quality to consumers. We explore reasons behind pork supply chains’ predominant focus on mass production combined with traceability and food safety, while only little attention has been given to potentially lucrative niche markets focused on intrinsic quality cues. Using established analytical frameworks of hedonic pricing and transactions costs economics we discuss alternative strategies for the segregation and promotion of intrinsic sensory differentiated pork. Growing empirical evidence in the literature underpins the importance of eating experience in delivering utility to consumers and in stabilizing declining demand trends in major markets. Building on current consumer behavioral literature and organizational developments in meat supply chains in Europe and Australia, we critically discuss opportunities to overcome this supposedly suboptimal situation.