Country-of-origin labels located on packages of beef, pork and poultry influence the perception of food safety and quality among consumers, according to a recent study conducted by marketing researchers at the University of Arkansas.
The results of the research, published in the Journal of Retail, were revealed as Congress contemplates repealing a law that requires meat to be labeled to indicate in what country the animal was born, raised and slaughtered.
Chris Berry, a marketing graduate student and member of the research team, said the study was conducted in hopes of determining what impact the labels would have on consumers. According to the group's study, the point of the country-of-origin labeling is to help retail customers make more informed purchases. But the benefits to consumers are unclear.
"We started out just looking at whether this country-of-origin labeling actually has effects on the inferences that consumers make, and ultimately if those inferences impact their intent to purchase those products," Berry said. "We found that's actually true."
The research team -- Berry, graduate student Amaradri Mukherjee and marketing professors Scot Burton and Elizabeth Howlett -- first began with a pilot study in which 50 individuals from the U.S were selected to participate in a Web-based survey.
The participants were asked for their opinion on the safety, taste and freshness of meat from 10 countries, including Mexico, Brazil, India, China, Canada, Russia and the U.S. Participants perceived meat from the U.S and Canada as safer than from other countries.
The group then conducted an experiment in which 123 participants were exposed to meat products that were labeled as being from animals born, raised and slaughtered in either the U.S. or Mexico. The participants were then asked questions designed to measure their preferences and purchase intentions.
"Consumers' inferences were higher for products that were born, raised and slaughtered in the U.S. than products that were born, raised and slaughtered in Mexico," Berry said.
A third study presented some of its 183 participants with a mock USA Today story that used actual information from the United States Department of Agriculture regarding the similarities in meat-processing standards in the U.S. and Mexico. The results of the experiment determined that the purchase intentions for meat from the U.S. were no longer higher.
"I think it's important for two reasons," Berry said of the results. "One reason is to show that, at least based on our data, country-of-origin labeling does affect the inferences that consumers make and ultimately their purchase intentions. That being said, it's important to realize that if consumers are aware of the meat-processing system audits that are in place, that these effects diminish."
The study was conducted amid a growing debate regarding the labels. Proponents believe that consumers have a right to know where the meat animals are born, raised and slaughtered. Opponents say it will prove costly to producers and consumers alike.
Mexico and Canada are threatening to retaliate against the U.S with billions of dollars in sanctions if the law isn't repealed, claiming the labels put their products at a competitive disadvantage in America. The World Trade Organization agrees with the two countries, ruling that the U.S. labels violate trade rules. The organization has rejected the four appeals from the U.S.
The U.S. House of Representatives recently voted to repeal the law, but the Senate has not yet taken action. U.S. Sen. John Boozman, R-Ark., said last month it was time for the U.S to repeal the law because "there is very little gain to be had, if any."
The University of Arkansas isn't the first to conduct a study regarding consumers and country-of-origin labels since they were required in 2009. Results have largely been mixed, but Glynn Tonsor, a Kansas State University agricultural economist, said one theme is consistent in the research.
"Several studies have found that U.S. consumers state a desire for origin information," Tonsor said in an email. "What is lacking in the literature is evidence of a real-world increase in demand for the provision of said information. That is, in short, it appears the public says they want country of origin information, but do not reveal an actual demand for said information."
But Tonsor, who was part of a research team tabbed to compile an economic analysis of the country-of-origin labels for Congress, said there will be an impact if the labels remain.
"I would say that having the [labels] persist would result in higher meat prices and lower meat production than would otherwise occur," Tonsor said in an email.
Business on 07/17/2015