Consumer Preferences and Market Segmentation for Differentiated Beef with Less Environmental Impact
Karen Enciso1, Stefan Burkart1, Andres Charry2, Cristhian David Puerta Rodriguez1, Jhon Jairo Muñoz Quiceno3, Lisbeth Rocio Ruiz3, Jhon Freddy Gutierrez Solis1, Nelson José Vivas Quila3, Noé Albán Lopez3, Sandra Morales Velasco3, Michael Peters1
1International Center for Tropical Agriculture (CIAT), Colombia
Environmental awareness is increasing globally and this leads to a segment of consumers willing to pay a higher price for products developed under more environmentally friendly conditions. In Colombia, beef production is specifically characterised by extensive management, with low levels of productivity and a significant negative environmental impact. Taking into account this problem, the International Centre for Tropical Agriculture (CIAT) and the University of Cauca in Colombia have worked during the last decade on the development of new alternatives for livestock production, such as improved forages, farming practices and silvo-pastoral systems, which generate significant benefits for the environment (e.g., reduction of greenhouse gas emissions, protection and maintenance of soil fertility, biodiversity conservation) while also improving productivity levels (load capacity and weight gain). However, the implementation of these new technologies often requires high levels of initial investment, which detains producers from adoption. Thus, identifying a segment of consumers willing to pay for beef produced with less environmental impact would create an incentive for producers to invest in new technologies and result in higher levels of adoption.
Keywords: Beef, CHAID algorithm, Colombia, consumer preferences, market segmentation
Contact Address: Stefan Burkart, International Center for Tropical Agriculture (CIAT), Tropical Forages Program, Km 17 Recta Cali-Palmira, Cali, Colombia, e-mail: s.burkartcgiar.org