Hamburger Pork Chop Deli Ham Chicken Wing $9.05 $5.31 $4.52 $3.93 $2.45 $2.43 $2.17 $3.22
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1 FooDS FOOD DEMAND SURVEY Volume 4, Issue 4: August 15, 2016 About the Survey 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. MEAT DEMAND Willingness-to- Pay Last Year: August 2015 Last Month: July 2016 Steak Chicken Breast Hamburger Pork Chop Deli Ham Chicken Wing Beans & Rice Pasta $8.03 $5.81 $4.93 $4.42 $3.18 $2.92 $3.07 $3.97 $9.05 $5.31 $4.52 $3.93 $2.45 $2.43 $2.17 $3.22 August 2016 $7.91 $5.28 $4.53 $4.02 $2.41 $2.78 $2.14 $2.52 % change (July - August) % -0.56% 0.22% 2.29% -1.63% 14.40% -1.38% % After a spike in July, willingness-to-pay (WTP) for steak, chicken breasts, and deli ham fell in August. WTP for hamburger remained virtually unchanged. There was a slight increase in WTP for pork chops and for chicken wings. Compared to one year ago, WTP is lower for all food products. FOOD EXPENDITURES Current weekly Current weekly Anticipated change in at Anticipated change away from at home away from home home in next 2 weeks home in next 2 weeks August 2015 $98.96 $ % -1.32% July 2016 $94.73 $ % -1.18% August 2016 $96.49 $ % -1.20% % change 1.86% -1.48% (July - August) Expenditures on food eaten at home increased 1.86% from July to August and expenditures on food purchased away from home decreased 1.48% compared to one month ago. Compared to last month, consumers expect slightly higher prices for chicken and pork and lower prices for beef. Plans to eat out more decreased compared to last month, and plans to buy beef and chicken increased slightly.
2 Consumer Expectations FooDS Page 2 AWARENESS & CONCERN TRACKING GMOs, E. coli, and Salmonella remained the most visible issues in the news over the past two weeks. Awareness increased for all issues, except for BSE. The largest percent increase in awareness over the last month was for hormones and GMO. E. coli, Salmonella and hormones were ranked as the top three concerns in August. The largest percent increase in concern over the last month was for cloning followed by hormones. The largest percent decrease in concern was for greenhouse gases. Awareness of Food Issues
3 Concern for Food Issues FooDS Page 3 GENERAL FOOD VALUES Taste, safety, and nutrition remained consumers most important values when purchasing food this month. Consumers food values remained similar to those in past months, with a slight decrease in perceived value of appearance and naturalness and an increase in perceived value of safety and price. Similar to previous months, consumers reported that their main challenge was finding affordable foods that fit within their budget. Finding affordable foods that fit with-in their budget was the challenge experiencing the largest percentage decrease. In August, 10.18% of participants reported having food poisoning, a 19.72% decrease from one month ago. About 5.5% of respondents reported being vegetarian or vegan. Consumer Challenges Consumer Values
4 AD HOC QUESTIONS Several new ad hoc questions were added this month. FooDS Page 4 First, participants were asked: Imagine seeing a label on a food product that pledges a portion of the proceeds from the sale of the food go to a particular social cause or group. Which of the following social causes or groups would be most appealing to you? Participants were asked to rank each of the outcomes on a scale of 5 to 1 where 5=most appealing and 1=least appealing. On average, participants ranked a label pledging a portion of the proceeds go to a local food bank to help the hungry as the most appealing. Participants ranked a label pledging a portion of the proceeds go to a campaign to promote healthy eating and exercise as the least appealing. The following percent of respondents ranked each issues as most appealing: Portion of the proceeds go to a local food bank to help the hungry (51.4%), Portion of the proceeds go to an animal advocacy organization (15.2%), Portion of the proceeds go to an environmental advocacy organization (15.2%), and Portion of the proceeds go to farmers in a developing country (9.6%), and Portion of the proceeds go to a campaign to promote healthy eating and exercise (8.6%). Preferred Support for Social Causes or Groups
5 AD HOC QUESTIONS FooDS Page 5 Second, participants were asked Which of the following characteristics would be most important to you when shopping for eggs? Please allocate 100 points to the following characteristics in terms of the importance in deciding whether and which egg option to buy (total points must sum to 100). Six different characteristics were shown in random order. On average, Price: low vs. high price was most important when shopping for eggs, with 26 out of 100 points allocated to this issue on average across participants. The brand of eggs was rated as least important with less than half the points allocated to brand than price. Size was, on average rated slightly more important than cage vs. cage free, whereas color was slightly less important than this issue. These statistics can provide a crude estimate of willingness-to-pap (WTP). Presuming respondents perceive that the gap between low vs. high prices is a $1 dozen difference, then for every dollar change, mean rating falls by 26 points. By contrast, going from small to large eggs increases the mean rating by about 20 points. It follows that people would give up 20/26=$0.77/dozen to have large instead of small eggs. Using similar logic, WTP for cage free vs. cage is $0.67/dozen, brown vs. white is $0.48/dozen, proceeds to preferred social cause vs. none is $0.46/dozen, and least to most preferred brand is $0.46/dozen. Presuming respondents perceive that the gap between low vs. high prices is a $2 dozen difference, then for every dollar change, mean rating falls by 26/2 = 13 points. And, in this scenario, WTP for large vs. small eggs is 20/13 = $1.55/dozen. WTP for the other attributes also double under these assumptions. Attribute Importance When Shopping for Eggs
6 AD HOC QUESTIONS Last, respondents were asked: Are you a member of the AmeriCorp program? FooDS Page 6 Less than 8% of participants stated they are a member of the AmeriCorp program, while over 92% stated they are not a member of the AmeriCorp program. Members of the AmeriCorp Program
Hamburger Pork Chop Deli Ham Chicken Wing $7.76 $5.53 $4.52 $4.02 $2.45 $2.79 $3.10 $3.51
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