"There's a market for natural and organic pork", economist says.

Countryside & Small Stock Journal
July 1, 2001

The potential markets are there for smaller-scale hog producers considering niche marketing of natural and organic pork, according to a University of Minnesota study.

"Between 40 and 80% of all consumers is the potential market for organic and natural pork producers, with perceived safety being the drawing factor," says W. Parker Wheatley, an applied economist who did the study for the U and M Swine center.

Wheatley cited other research showing 39% of consumers were highly concerned about food safety and were very likely to pay significant premiums for products they perceived to be safer. Another 37% were highly concerned about food safety and nutrition issues, as well as being price conscious. The remaining 24% had few concerns about food safety and nutrition.

Wheatley says another study showed 11% of consumers had concerns about chemicals in meats, 52% had concerns about food safety, with only 19% of consumers being primarily concerned about prices.

Another study showed how consumers rank various attributes specifically related to the market for natural and organic pork products. In order of importance, the ranking was: Not treated with chemical preservatives, no growth hormones, no antibiotics, and animals fed organic feeds.

Other studies found that many consumers value pork production that minimizes environmental impacts, especially surface and groundwater pollution. For example, a 1999 study found 71% of consumers were somewhat or very interested in buying environmentally enhanced foods, and a 1993 study found the niche for environmental meats is 28% of consumers.

"Based on these studies, there's a general concern and willingness by consumers to buy products with certain attributes," Wheatley says. "Much of the evidence shows consumers will pay premiums at the retail level.

"In addition, there is direct evidence from farmers and marketing firms showing significant premiums can be obtained at the farm level as well."


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