Mexican consumers' perceptions and preferences for US and Texas beef

Abstract

AbstractThe United States (US) is the world's largest beef producer and the third‐largest exporter. Beef production is also an important component of Texas history and economy. However, the US beef industry faces several challenges, including declining domestic consumption and competition for export markets. A potential strategy to overcome these challenges is promoting US beef products in international markets. Mexico is one of the markets of importance as it is the third‐largest export destination for US beef. In this study, we explored the use of “US” country of origin and “Texas” geographic indication information for consumer advertising of beef in Mexico. It was posited that Texas's international reputation as a cattle‐producing region could be used to promote Texas beef products. Data for this study were collected in 2019 and 2020 using an online survey of 1021 Mexican food shoppers. The survey included a choice experiment with 12 hypothetical choice scenarios of beef steak with different product attributes and prices. The product attributes considered were place of origin, food safety level, and production practices. Mexican consumers were found to have a strong preference for domestic beef products. Moreover, Mexican consumers are willing to pay $1.16 and $1.18/lb for enhanced food safety and natural production practices. Consumers are also willing to pay $0.19/lb more for US–Texas beef than that of US beef. The results of this project provide valuable information for developing marketing strategies and promotion campaigns aiming to improve the competitiveness of US and Texas beef products in foreign markets [EconLit Citations: D12, Q17, Q18].