Unlocking the monetary value: investigating the importance of quality information in Australian red meat chains

ContextThis study assesses the monetary value of product quality information, specifically feedback from slaughter and production methods, within the Australian beef and sheep meat supply chains.AimsThe primary objective was to investigate the value assigned by supply chain actors to product quality information, measured as willingness to pay for receiving it or willingness to accept payment for providing it. The study also aimed to explore how the value of this information varies based on information quality and quantity.MethodsA contingent valuation approach was employed, utilising survey data from 104 producers. Logit models were used to identify the factors influencing meat producers' willingness to accept payment and willingness to pay.Key resultsOver one-third of cattle and sheep producers expressed interest in receiving feedback from slaughter information and providing production methods information. Production methods information had the highest mean value at the premium information quality and quantity level, with values of AU$20.49/head in the beef industry and AU$10.13/head in the sheep industry. Conversely, feedback from slaughter information had the lowest mean value at the low information quality and quantity level, with values of AU$0.83/carcass in beef and AU$0.14/carcass in sheep. Farmers' experience and education level significantly influenced their willingness to accept payment and willingness to pay for product quality information.ConclusionsA significant proportion of producers within the Australian beef and sheep meat supply chains express a desire to provide or pay for product quality information. The value assigned to this information demonstrates a positive relationship with higher information quality and quantity. However, variations in expressed value of different information types, and the influence of farmer and farm characteristics, suggest the presence of chain failures that disrupt information valuation.ImplicationsThese findings have important implications for improving the performance of the red meat supply chains. Understanding the factors that influence the valuation of product quality information allows stakeholders to develop targeted strategies to enhance the efficiency and effectiveness of information exchange. This may involve addressing chain failures, and implementing measures to ensure consistent and accurate valuation of information. Ultimately, these improvements can contribute to enhanced decision-making processes and overall supply chain performance in the Australian beef and sheep meat industry. Sharing information on product quality can benefit the entire supply chain, but its monetary value in Australian beef and sheep meat supply chains remains unclear. This study found that most producers want to provide or pay for feedback on slaughter and production methods, and the value of information increases with its quality and quantity. However, the value differs by information type and farmer characteristics. Improving information measurement and sharing requires investments that account for these variations.