Hamburger Pork Chop Deli Ham Chicken Wing $7.80 $5.79 $4.74 $4.15 $2.29 $2.57 $2.37 $3.34

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1 FooDS FOOD DEMAND SURVEY Volume 4, Issue 6: November 15, 2016 About the Survey FooDS tracks consumer preferences and sentiments on the safety, quality, and price of food at home and away from home with particular focus on meat demand. FooDS is a monthly on-line survey with a sample size of at least 1,000 individuals, weighted to match the US population in terms of age, gender, education and region of residence. See the online technical document for more details. MEAT DEMAND Willingness-to- Pay Last Year: November 2015 Last Month: October 2016 Steak Chicken Breast Hamburger Pork Chop Deli Ham Chicken Wing Beans & Rice Pasta $7.06 $5.44 $4.15 $3.82 $1.98 $2.45 $2.04 $2.77 $7.80 $5.79 $4.74 $4.15 $2.29 $2.57 $2.37 $3.34 November 2016 $6.77 $5.07 $4.21 $3.81 $2.10 $2.07 $1.49 $2.18 % change % % % -8.19% -8.30% % % % (Oct. - Nov.) Compared to one month ago, willingness-to-pay (WTP) decreased for all food products. Chicken wings and beans and rice experienced the largest percent decreases in WTP. WTP for steak, chicken breast, pork chop, and chicken wing are all lower compared to one year ago. Some of the WTP declines may be due to postelection uncertainty (the surveys were completed on November 10 and 11). Pork products experienced smaller declines than other meats implying a increase in WTP for pork relative to beef and chicken. FOOD EXPENDITURES Current weekly Current weekly Anticipated change in at Anticipated change away from at home away from home home in next 2 weeks home in next 2 weeks November 2015 $95.54 $ % -1.59% October 2016 $99.10 $ % -1.63% November 2016 $93.44 $ % -1.00% % change -5.71% % (Oct. - Nov.) Expenditures on food eaten at home decreased 5.71% from October to November and expenditures on food purchased away from home decreased 10.52% from October to November. Consumers expect lower beef prices compared to one month ago, while price expectations for chicken and pork remain virtually unchanged. Consumers plan to buy less chicken compared to last month, but purchasing plans for beef and pork remain similar to last month.

2 Consumer Expectations FooDS Page 2 AWARENESS & CONCERN TRACKING GMOs, Salmonella, and E. coli were the most visible issues in the news over the past two weeks. Awareness decreased for all issues this month. The largest percent decrease in awareness over the last month was for GMO followed by antibiotics. Salmonella, E. coli, and GMOs were ranked as the top three food safety concerns in November. Concern for all issues decreased over the past month. The largest percent decrease in concern was for mad cow followed by cancer and meat consumption. Awareness of Food Issues

3 Concern for Food Issues FooDS Page 3 GENERAL FOOD VALUES Taste, safety, and price remained consumers most important values when purchasing food this month. Consumers food values remained similar to those in past months. Similar to previous months, consumers reported that their main challenge was finding affordable foods that fit within their budget. Finding foods my children will eat was the challenge experiencing the largest percentage increase, while losing weight experienced the largest percent decrease. In November, 8.21% of participants reported having food poisoning, a 28.11% decrease from one month ago. About 5.67% of respondents reported being vegetarian or vegan. Consumer Challenges Consumer Values

4 AWARENESS & CONCERN TRACKING FooDS Page 4 Several ad hoc questions were added to the survey this month. First, participants were asked: Imagine shopping at your local grocery store for ground beef. What is the most you would be willing to pay ($/lb) for a package of ground beef that had the following labels? (Note: The current average price of ground beef in the U.S. is around $3.66/lb) Participants stated they would be willing to pay the most for ground beef labeled as grass fed at an average WTP of $4.26/lb followed by ground beef labeled organic at an average WTP of $4. 24/lb. Semi-free range was valued more than semi-confinement ($3.78 vs. $3.28). Participants stated they would pay the least amount for unlabeled ground beef at an average price of $2.92/lb. The sampling error for each WTP value is about +/- $0.15/lb with 95% confidence (thus, if two means are $0.30/lb apart or more, they are statistically different). Willingness-To-Pay for Added Labeling

5 AD HOC QUESTIONS FooDS Page 5 Second, participants were asked: Farmers rely on fertilizers to promote plant growth and grow more food. How desirable or undesirable would you consider it to eat a fruit or vegetable grown with the following fertilizers? Individuals responded on a five-point scale: 1=very undesirable, 2=somewhat undesirable, 3=neither desirable nor undesirable, 4=somewhat desirable, or 5=very desirable. The most common answer for each item was neither desirable nor undesirable, except for municipal waste where very undesirable was the most common response. On average, fertilizer created through a process that uses natural gas and nitrogen in the air was perceived as most desirable followed by animal manure. Municipal waste was ranked as the least desirable fertilizer product. The sampling error is about +/ with 95% confidence (thus, if two means are apart by 0.15 or more, they are statistically different). Consumer Preferences for Use of Fertilizers

6 AD HOC QUESTIONS FooDS Page 6 Third, participants were asked: Which types of fertilizer are allowed in organic agriculture? Participants were asked to select all that applied. Over half of the participants stated that the use of animal manure as a fertilizer was allowed in organic agriculture. About one-third of respondents stated fertilizer created through a process that uses natural gas and nitrogen air was an allowed fertilizer in organic agriculture. Only 13% of participants thought that municipal waste was an allowed fertilizer in organic agriculture. The sampling error is about +/- 3% with 95% confidence. Fertilizers Allowed in Organic Agriculture