Meristem: Beef Science

Surveys unveil attitudes about food safety and what they mean for Canadian beef.

Whether in the wake of a crisis such as BSE or simply trying to ramp-up demand, Canada has three basic options when trying to regain or strengthen beef markets:

Each answer has value for different situations, but all share a common need: to implement effective change, you must first know the customer.

It's for this reason that Dr. Ted Schroeder, with support from the National Beef Industry Development Fund (NBIDF), undertook a consumer perception study to gauge attitudes related to beef food safety, in four primary markets for Canadian beef. This was used as a basis to propose supply chain management strategies to enhance beef demand.

"Part of the idea for this study came from observing what happened following the first BSE occurrence in Canada, compared to following the BSE incidence in Japan," says Schroeder, an agricultural economist at Kansas State University. "How the domestic consumers responded in both markets said a lot about the differences in risk perceptions related to food safety. As an export-driven industry, it's important for Canada to understand the consumer perceptions it faces, particularly today as they relate to food safety attitudes."

In the marketplace, it's important to remember perception is reality, notes Schroeder. "If you can change perceptions in your favour, or cater to existing perceptions, you can gain a lot of market strength. But first you need to understand the perceptions that are out there."

Profiling top markets

To provide that understanding, Schroeder and his colleagues conducted extensive surveys focusing on consumer perceptions and attitudes about beef food safety during 2006, with approximately 1,000 consumers in each of the primary markets of Canada, the U.S., Japan, and Mexico.

The information harvested was used to assess consumer perceptions and attitudes about Canadian beef food safety, and to tie those to specific opportunities for improving the standing of Canadian beef.

"Food safety perceptions have never been more important," says Schroeder. "You don't have to tell that to anyone in the Canadian beef industry."

Recent concerns about food safety have been the most disruptive and costly events the Canadian beef industry has ever experienced, he notes. "At best, food safety scares reduce consumer confidence in beef products. At worst, complete loss of beef market access occurs as a result of a food safety event. Either scenario adds considerable stress to the Canadian beef industry."

Different countries, attitudes

The consumer perception study recognized that consumers in different cultures, in different parts of the word, and particularly affluent consumers that are important targets for Canadian beef, all have differences in how they perceive and how they might react to a perceived food safety issue.

"Before speculating on these differences, we wanted to first try to confirm and quantify what in fact the different perceptions were," says Schroeder. "We confirmed there certainly are significant differences in these major consuming markets, each with important implications for the Canadian beef industry.

"In a situation such as BSE, the surveys also made us better able to understand why consumers in these different markets tend to react so differently to the same event."

Results showed that consumers in Japan have a particularly high aversion to any perceived food safety risk.

"Even if the risk is at very low levels, they're quite averse to it," says Schroeder. "They also tend to perceive the risk as much higher than what it actually is. As a result, you get sort of a double whammy of negatives with the Japanese."

To attract or gain access to a consumer with that type of attitude and perception would be more difficult and require a different strategy than a consumer in Canada or the U.S., the study found.

"Consumers in both the U.S. and Canada were relatively similar in their attitudes and perceptions of beef safety, and collectively they are not very risk averse," says Schroeder. "As North American consumers, we don't want tainted product, but on the other hand we trust inspection systems and we trust the information we get from science and government agencies. We recognize very low probabilities of strange events, and furthermore our perceptions are that our beef products are generally pretty safe."

Mexican responses were similar to the Japanese, the study revealed. "Mexico was an interesting one," says Schroeder. "The Mexicans are not quite as risk adverse as the Japanese, but they had even lower perceptions about the general safety of the product. It could be that the Mexicans have more food safety concerns or events than the more developed countries do, and this influences their perceptions."

'Sobering' results

In the overall comparison, about 80 percent or more of consumers in Canada and the U.S. considered beef a safe product, whereas only 48 percent of Japanese and 60 percent of Mexican respondents felt beef is safe to consume.

"It's clear that beef food safety concerns in Mexico and, especially, Japan are significant demand drivers," says Schroeder. "Even if the perceived risk is at very low levels, consumers in those countries are quite averse to any potential beef food safety concern."

By comparison, North American consumers were not very risk averse. "North American consumers recognize very low probabilities of strange events and they perceive beef products to generally be pretty safe. They trust inspection systems and they trust the information they get from science and government agencies."

Compared to four years ago, approximately 20 percent of Canadian and U.S., 30 percent of Mexican, and 55 percent of Japanese consumers have reduced their beef consumption because of food safety concerns.

"This finding is particularly challenging for Canada as a beef exporter, because lost consumer confidence in beef can occur regardless of what the Canadian beef industry alone does to ensure food safety. It underscores that beef food safety is a global issue."

Among other key findings:

Broad analysis, strategic considerations

The complete study results include a wealth of further detailed data and analysis, along with a number of proposed strategies for improving supply chain management.

"These covered both strategies for dealing with the consumer and strategies for dealing with the product," says Schroeder. "We identified which approaches might be most effective in each of the different countries."

The National Beef Industry Development Fund (NBIDF) is a $9.25 million fund created through the investments of the governments of Canada, Alberta and British Columbia. It contributed to more than 120 research and development projects from 2002 to 2006, to support the competitiveness of the Canadian beef industry. More information is available at www.cattle.ca/NBIDF.

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Archives

Understanding consumer risk perceptions

Profiling top markets

Different countries, attitudes

'Sobering' results

Among other key findings:

Broad analysis, strategic considerations