Volume 5, Issue 11: March 20, 2018 FOOD DEMAND SURVEYagecon.okstate.edu/files/March 2018.pdf · Volume 5, Issue 11: March 20, 2018 Food Demand Survey | Oklahoma State University |

A

FooDSFOOD DEMAND SURVEY

Volume 5, Issue 11: March 20, 2018

Food Demand Survey | Oklahoma State University | [email protected] Norwood | Professor | 405-744-9820

Susan Murray | Research Specialist | 405-744-4857This project is supported by a Willard Sparks Endowment, the Oklahoma Agricultural Experiment Station, and the

Agricultural and Food Research Initiative Competitive Program of the USDA National Institute of Food and Agriculture.

FooDS tracks consumer preferences and sentiments on the safety, quality, and price of food at home and away from home with particular focus on meat demand. FooDS is a monthly on-line survey with a sample size of at least 1,000 individuals, weighted to match the US population in terms of age, gender, education and region of residence. See the online technical document for more details.

About the Survey

Compared to one month ago, willingness-to-pay (WTP) increased for all food products, except for chicken breast. WTP for deli ham, followed by steak, saw the largest percent increase among meat products compared to one month ago. WTP for all meat products is lower than one year ago, except for steak and deli ham.

MEAT DEMAND

Expenditures on food eaten at home remained virtually unchanged from February to March and expenditures on food purchased away from home increased 5.15%. Consumers expect an increase in chicken, beef, and pork prices compared to one month ago. Consumers plan to buy slightly more beef, but less chicken and pork compared to last month. Plans to eat out decreased compared to last month.

FOOD EXPENDITURES

Willingness-to-Pay

Steak Chicken Breast

Hamburger Pork Chop Deli Ham Chicken Wing

Beans & Rice

Pasta

Last Year:March 2017

$6.89 $5.45 $4.62 $3.57 $1.75 $2.34 $2.10 $3.11

Last Month:February 2018

$6.54 $5.20 $4.18 $3.14 $1.80 $2.08 $1.96 $2.63

March 2018 $7.78 $5.06 $4.34 $3.38 $2.15 $2.26 $2.24 $2.70

% change(Feb. - March)

18.96% -2.69% 3.83% 7.64% 19.44% 8.65% 14.29% 2.66%

Current weekly at home

Current weekly away from home

Anticipated change in at home in next 2 weeks

Anticipated change away from home in next 2 weeks

March 2017 $93.88 $50.96 -0.12% -0.77%

February 2018 $94.12 $50.85 -0.26% -0.81%

March 2018 $94.13 $53.47 -0.33% -1.02%% change

(Feb. - March)0.01% 5.15% -------- --------

http://agecon.okstate.edu/files/Survey%20Info%20(pdf4556).pdf




Consumer Expectations FooDS Page 2

0.32

0.00-0.07

-0.29

0.25

0.13 0.14

0.36

0.00 -0.06

-0.30

0.20

0.070.08

0.34

0.02 -0.09

-0.33

0.19

0.07 0.06

-0.4

-0.3

-0.2

-0.1

0

0.1

0.2

0.3

0.4

I plan to buy morechicken

I plan to buy morebeef

I plan to buy morepork

I plan to eat outmore

I expect higher beefprices

I expect higherchicken prices

I expect higher porkprices

Mean

(%)(Di

fferen

ce in A

gree a

nd Di

sagree

)Mar-17 Feb-18 Mar-18

GMOs, E. coli, and Salmonella were the most visible issues in the news over the past two weeks. Awareness for all items increased relative to last month. The largest percent increase in awareness from February to March was for cancer and meat consumption followed by antibiotics. Salmonella, E. coli, and hormones ranked as the top three food safety concerns in March. Concern for all items increased relative to last month. The largest percent increase in concern from February to March was for cancer and meat consumption followed by pink slime.

AWARENESS & CONCERN TRACKING

Awareness of Food Issues

7.97

6.42

3.94

8.20

8.96

5.63

10.18

7.70

4.05

7.96

3.56

5.23

8.67

7.12

4.56

1.19

4.57

1.05

0%

2%

4%

6%

8%

10%

12%

1

2

3

% Chan

ge

Mean

(%)(Ra

nking:

1 = No

thing; 5

= A Gr

eat De

al)

Last Year: March 2017 Last Month: February 2018 Mar-18 % Change (February 2018 - March 2018)




Concern for Food Issues FooDS Page 3

4.12

3.57

2.572.42

2.85

2.30

5.58

5.18

5.53

3.04

4.60

3.97

2.53

2.45

3.58

4.153.97 3.86

0%

1%

2%

3%

4%

5%

6%

1

2

3

4

% Chan

geMean

(%)(Ra

nking:

1 = Ve

ry Unco

ncerne

d; 5 = V

ery Co

ncerne

d)Last Year: March 2017 Last Month: February 2018 Mar-18 % Change (February 2018 - March 2018)

Taste, safety, and nutrition were consumers’ most important values when purchasing food this month. Consumers’ food values remained similar to those in past months, with an increase in perceived value of nutrition. Similar to last month, consumers reported that their main challenge was finding affordable foods that fit within their budget. Losing weight was the challenge experiencing the largest percent increase, while finding affordable foods that fit within my budget was the challenge experiencing the largest percent decrease. In March, about 10.1% of participants reported having food poisoning, a 44.5% increase from last month. About 5.7% of respondents reported being vegetarian or vegan.

GENERAL FOOD VALUES

Consumer Challenges

-7.06

2.81

6.90

1.28

-2.01-1.38

1.36

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

0

1

2

3

4

5

6

Finding affordablefoods that fit with-

in my budget

Avoiding certainnutrients oringredients

Losing weight Avoidingpesticides, added

hormones andantibiotics

Finding convenientalternatives

Finding time tocook at home

Finding foods mychildren will eat

% C

han

ge

Mea

n (

%)

(1 =

Lea

st; 7

= M

ost

)

February March % Change

Consumer Values

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

% C

han

ge

February March




FooDS Page 4

Several new ad hoc questions were added to the survey this month relating to people’s perceptions of added hormones in meat production. These questions were repeated from the FooDS survey in May 2016. Participants were first asked: “What percentage of the following types of farm animals in the United States are given added growth hormones to promote growth and muscle development?”. Participants stated that over half of beef cattle, broiler chickens and pigs are given added growth hormones to promote growth and development. Beef cattle ranked the highest out of the three animals, but the average decreased since May 2016. The average number of people who believe pigs receive added hormones also decreased. The average number of people who believe broiler chickens receive added hormones increased since May 2016.

AD HOC QUESTIONS

60.4%

55.3%

54.0%

58.7%

57.0%

53.3%

48%

50%

52%

54%

56%

58%

60%

62%

Beef cattle Broiler chickens Pigs

Mean

% of

anim

als be

lieve

d to b

e give

n add

ed ho

rmon

es

May-16 Mar-18

“What percentage of the following types of farm animals in the United States are given added growth hormones to promote growth and

muscle development?”




FooDS Page 5

Participants were asked: “If you walked into your local grocery store and saw a package of meat with the label ‘no added hormones’, what is the highest premium you would be willing to pay for the following meats with this label over meats without this label?”Similar to May 2016, participants stated they were willing to pay premiums between $1 and $2 for each cut of meat with the label ‘no added hormones’. The highest premium was for steak at $2.09, and the lowest premium for chicken wings at $1.20. WTP for all meat products was lower in March 2018 compared to May 2016. Participants were later asked this same question after seeing the statement: “Approximately 90 percent of all U.S. feedlot cattle are injected with hormones to improve growth rates and feed efficiency. Currently federal regulations do not allow the use of growth hormones in chicken or hog production.”After seeing the above statement, participants willing to pay premiums decreased across all meat cuts, except for hamburger. The highest premium was for steak at $2.00 and the lowest premium was for chicken wings at $1.17.

AD HOC QUESTIONS

$2.00

$1.41

$1.61

$1.20

$1.17

$1.53

$2.09

$1.56

$1.60

$1.31

$1.20

$1.65

$2.14

$1.64

$1.70

$1.32

$1.24

$1.70

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50

Steak

Pork Chop

Hamburger

Deli Ham

Chicken Wing

Chicken Breast

WTP premium for 'no added hormones' ($/1b)

May-16 Mar-18 Mar-18 Plus Informative Statement

“If you walked into your local grocery store and saw a package of meat with the label ‘no added hormones’, what is the highest premium you

would be willing to pay for the following meats with this label over meats without this label?”




FooDS Page 6

Next, participants were asked: “How concerned or unconcerned are you about the following issues as they relate to the use of hormones in livestock production?” Individuals responded on a five-point scale where 1=very unconcerned, 2=somewhat concerned, 3=neither concerned nor unconcerned, 4=somewhat concerned, 5=very concerned. The most common answer was “somewhat concerned” for each statement, except for “the impacts on the health of me or my family” where “very concerned” was the most common answer. Less than 10 percent of participants answered “very unconcerned” for each of the statements provided. This question was repeated after providing participants with the statement “Approximately 90 percent of all U.S. feedlot cattle are injected with hormones to improve growth rates and feed efficiency. Currently federal regulations do not allow the use of growth hormones in chicken or hog production.”The results were similar to those before the added statement. Concern for the use of hormones in livestock production remained similar to May 2016.

AD HOC QUESTIONS

4.1

3.7 3.73.6

3.5

4.1

3.7 3.73.6

3.5

4.1

3.8 3.83.7

3.6

1

2

3

4

5

The impacts on the health ofme or my family

The impacts on the taste ofmeat

The impacts on the welfareof the animal

The impacts on theenivornment

The impacts on the farmer

1 = Ve

ry Un

conc

erned

; 5 =

Very

Conc

erned

May-16 Mar-18 Mar-18 Plus Informative Statement

How concerned or unconcerned are you about the following issues as they relate to the use of hormones in livestock production?”




FooDS Page 7

Lastly, participants were asked: “Is there a difference between hemp and marijuana?”The majority of participants answered “yes” there is a difference between hemp and marijuana. Those who answered “yes” are correct, there is a difference between hemp and marijuana. The major difference between them is that marijuana is intoxicating and hemp is not. Both hemp and marijuana are regulated under the same guidelines.

AD HOC QUESTIONS

63%

37%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No

Perce

nt of

Respo

nden

ts

Is there a difference between hemp and marijuana?

Documents

Volume 5, Issue 11: March 20, 2018 FOOD DEMAND SURVEYagecon.okstate.edu/files/March 2018.pdf · Volume 5, Issue 11: March 20, 2018 Food Demand Survey | Oklahoma State University |