Beef products, while traditionally associated with cattle breeds such as Angus or Hereford, can also come from dairy-type cattle, such as Holsteins. These dairy-type steers represent a significant source of U.S. feedlot cattle with around 3 to 4 million calves entering the nation’s beef supply annually. Holstein meat sensory qualities such as juiciness and tenderness as well as overall acceptability may be indistinguishable, or even superior, to those of traditional beef breeds. Thus, Holstein cattle can provide consistent, high-quality products. However, finding opportunities to market Holstein beef products has been a challenge for producers. In December 2016, Tyson Foods, Inc. announced that it would no longer slaughter finished Holstein steers at their Joslin, Illinois facility, creating a competitive disadvantage for Holstein suppliers and an unstable market. Seeking ways to increase the value of Holstein cattle, there has been a recent shift towards beef x dairy crossbreeding where lower milk-producing dairy dams are bred to beef sires, commonly known as “beef-on-dairy" or “dairy-beef.” However, little is known about consumer acceptance of dairy-beef. Additionally, as interest in food traceability increases, traceability may be another way for the dairy-beef producers to differentiate their products. This study uses a consumer discrete choice experiment (DCE) with a reference-price-informed design (RP) to evaluate relative preferences and willingness-to-pay (WTP) for traceability and dairy-beef breed labels on ground beef and ribeye steak. Consumers were willing to pay the highest premium for Certified Angus Beef for both ground beef and ribeye steak followed by Certified Holstein Beef, Traceability, and Certified Dairy-Beef. There were differences in premiums for the three breed labels as well as traceability across both products, emphasizing that consumers have heterogeneous preferences for these attributes in higher vs lower-value products. Additionally, results revealed that breed and traceability labels were substitutes. This study helps to understand consumer preferences for U.S. beef products, ensuring industry leaders and stakeholders are better equipped to make more informed production decisions for U.S. Holstein and Dairy-Beef producers. Results can also be used by policymakers to inform possible support for Certified Holstein and Certified Dairy-Beef programs.
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