Costa rican consumer preferences for cattle feeding and management systems

One of the indispensable resources to the survival of the human race has become a social concern; food is no longer considered an infinite resource. Over the proximate future the world’s populace will be faced with the indisputable truth that the demand for food will far outweigh supply. In developing countries this need is more remarkable, and the growing population will only exacerbate this situation. From a global perspective, 14, 28% of the world’s population do not have physical access to appropriate protein and energy from their food sources and even more endure some micronutrient malnourishment (Godfray et al, 2010). Furthermore, it is expected in the near future, the demand for meat products in the developed world will remain relatively stable while in the developing world, the demand is expected to rise quite drastically. This is moderately attributable to the growth in population, as well as to the proliferation in affluence in many nations (Speedy, 2003). Understanding consumers’ preferences will enable producers to optimize the use of natural resources and transform current production methods into a more sustainable model. Lancaster’s Consumer Demand theory argues that “consumers derive utility not from goods directly but from the want-satisfying attributes of goods” (Lancaster, 1979). On the same lines Lancaster, (1979)It assumes that a good (product) can be described in terms of a multidimensional attributes profile, and that consumers’ choice behavior mirrors their predilections and overall judgment regarding that set of profiles. In the last decades, Costa Rica has experienced a shift in its productivity structure toward the tertiary sector (services), leaving only 3.5% of the human resources of the Greater Metropolitan Area dedicated to agriculture (Universidad de Costa Rica, 2014). Understanding this phenomenon, the researcher’s goal was to explain and describe consumers’ preferences in Costa Rica regarding cattle feeding and management systems, and thus identify opportunities to open new markets for cattle producers. The research tools utilized for this investigation were two instruments created by the researcher. The minimum number of participants for this survey research project was 208 people, which was determined by using the method established by Johnson and Orme (1996). The first instrument contained 13 questions in a Likert-type scale which had the objective of defining which attributes were more desirable to the consumers. On the second data collection instrument, the Conjoint Analysis method was utilized mixing the four top attributes determined on the first data collection. The results of the Conjoint Analysis identified the more desirable attributes regarding cattle feeding and management systems and the consumers’ willingness to pay for these desirable characteristics. These attributes included animal welfare, grass-fed, value added and price. A niche market was identified for these differentiated products that not only optimize natural resources but also give producers a better economic return, thus improving their standard of living. Market information should be made accessible and easy to understand by agricultural leaders for producers in order to reduce food losses and increase their economic viability. This study should be replicated in other developing countries in order to bring opportunities for ranchers and producers.