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Value Of A Brand
The skinny on implants
The European Union banned use of growth hormones in 1985. The issue of added growth promotants in beef production has since become one of the most contentious in the livestock industry.
Growth hormones increase weight gain in cattle by 5-20%, feed efficiency by 5-12%, and lean meat growth by 15-25%, compared to untreated cattle.
But research shows the preference for steaks from cattle produced without the use of growth hormones over steaks from cattle administered growth hormones is similar across France, Germany, the United Kingdom (UK) and the U.S. The question becomes: How much are consumers willing to pay for this preference?
Labels that were statistically significant were “No hormones,” “All natural,” and “Source verified.” The “No hormones” label had a negative relationship with retail price, averaging $0.22/lb. less than steak with no special labels. Previous research found consumers in France, Germany, the UK and the U.S. were willing to pay premiums of 92˘, 82˘, $1.22, and $2.63/lb. respectively for steaks produced without growth hormones.
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