1 USDA Survellance of Anmal Handlng at Aucton and Processng Facltes Glynn Tonsor and Chrstopher Wolf Mchgan State Unversty Dept. of Agrcultural, Food, and Resource Economcs 2009 NEC-63/FAMPS Meetngs Feb 2-3, 2009
2 Introducton/Problem Statement Anmal welfare s a growng ssue wth U.S. consumers State-specfc changes: FL, AZ, OR, CO, CA Chno, CA Westland/Hallmark processng plant case (1/08 ) Trggered calls for ncreased gov t t survellance of anmal handlng at publc transacton ponts USDA restructurng has been dscussed food safety & anmal handlng concerns wth current structure Anmal welfare & handlng nformaton reaches consumers from a range of sources Industry lack of separaton; servng self-nterest n clams??? Consumer Groups seekng to stop all meat producton??? Government and Unversty???
3 Needed Informaton Current unknowns nclude: Who desres publc survellance ncreases? What would they be wllng to pay? What s the mpact of dverse nformaton on votes?
4 Research Desgn/Data Used Oct./Nov. 2008, onlne survey of 2,001 U.S. consumers Purposely done mmedately before Proposton 2 vote n CA. Assessed perceptons, knowledge and preferences on a range of anmal welfare/handlng ssues Contngent valuaton approach
5 Perceved Anmal Welfare Informaton Accuracy (1=Very Inaccurate,,, 7=Very Accurate) The Humane Socety of the U.S. (HSUS) 4.93 Unversty Scentsts/Researchers 4.47 People for the Ethcal Treatment of Anmals (PETA) 4.22 Natonal Mlk Producers Federaton (NMPF) 4.20 U.S. Poultry & Egg Assocaton 4.18 Natonal Cattlemen's Beef Assocaton (NCBA) 4.11 Unted Egg Producers (UEP) 4.10 Natonal Pork Producers Councl (NPPC) 4.07 State Governmental Agences 4.00 Federal Governmental Agences 4.00
6 Perceved Ablty to Influence and Assure Anmal Welfare (1=Very Low Ablty,,, 7=Very Hgh Ablty) Farmer/Grower 5.33 Government Inspectors/Regulators 5.16 The Humane Socety of the U.S. (HSUS) 5.00 Meat or Mlk Processor 4.68 Anmal Industry Representatve Groups 4.58 People for the Ethcal Treatment of Anmals (PETA) 4.44 Consumer Food Purchaser 4.38 Retal Grocer 3.71 Food Servce Restaurant 3.59
7 Factor Analyss Factor analyss generates smaller set of varables (6) summarzng perceptons (19): F1_Info Industry (producer groups) F2_Info Government & Unversty F3_Info Consumer Groups F1_Ablty Food Preparaton (grocer, restaurant, consumer) F2_Ablty Supply Chan (farmer, processor, and gov t t nspector) F3_Ablty Consumer Groups) 6 varables enter our contngent valuaton model (Boxall & Adamowcz, 2002)
8 Core Queston: There has been a recent ncrease n meda attenton to handlng of anmals at lvestock aucton markets (facltes where anmals are transacted and change ownershp) as well as at processng plants (slaughter or packng plants where anmals are processed, generatng products for human consumpton). Suppose the next tme you go to vote, there s a related referendum on the ballot. If the referendum passes, mandatory USDA (Unted States Department of Agrculture) survellance of anmal handlng at lvestock aucton markets and processng facltes n the U.S. wll ncrease by X%. Please answer as f you were actually votng on a real referendum. Would you vote (crcle answer) FOR or AGAINST the referendum?
9 Core Queston: Follow-Up A follow-up queston was asked of those FOR the ntal queston: Suppose you were told that the referendum, f t passes, would result n a Y% ncrease n YOUR federal ncome taxes. Would you then change your vote to AGAINST? AGAINST? Answers dentfy one of three WTP ponts/ntervals (Lusk & Fox, 2002; Cooper, Hanemann, and Sgnorello,, 2002): 1) WTP = (0 ) f AGAINST 1 st queston 2) WTP ~ (0, Y) f FOR/AGAINST 3) WTP ~ (Y, nf) ) f FOR/FOR
10 One-and and-one-half-bound Dchotomous Choce Model Optmzed log-lkelhood lkelhood functon s: LL = I I + I j= 1 j= 2 lng( δ + γx + β ' Z ) + [ lng( δ + γx + β ' Z + αy ) lng( δ + γx + β ' Z )] [ 1 lng( δ + γx + β ' Z + αy )] j= 3 G(*) s logstc dstrbuton; Z s vector of explanatory varables; X & Y are from the presented queston Mean WTP -= δ + γx + β ' Z ( ) α
11 Results 76.9% supported ntal referendum queston Mean of 3 response combnatons was: 23.1% NO 47.5% YES/NO 29.5% YES/YES
12 Results: Entre Populaton Negatve: Tax ncrease, Income, F1_Info:Industry Negatve: Postve: Female, Consume, F3_Info:Consumer Groups, F1_Ablty: Food Prep, F3_Ablty: Consumer Group Survellance Increase Cubc preferences Mean WTP: -15.3% [ 50% survellance ncrease 15.3% [-30.1%, -4.6%]
13 Results: Incomes> 20k ( tax( Negatve: bndng segment ) Negatve: Tax ncrease, F1_Info:Industry Postve: Female, Consume, F3_Info:Consumer Groups, F1_Ablty: Food Prep, F3_Ablty: Consumer Group Survellance Increase Cubc preferences Mean WTP: -17.2% [ 50% survellance ncrease 17.2% [-32.4%, -4.4%]
14 WTP % vs. Survellance Increase % Mean WTP <0 b/c mean of 50.23% ncrease) WTP (%) (Entre Pop.) 95% CI Lower Bound (Entre Pop.) WTP Pont Estmate (Entre Pop.) 95% CI Upper Bound (>$20k Pop.) 95% CI Lower Bound (>$20k Pop.) WTP Pont Estmate (>$20k Pop.) 95% CI Upper Bound USDA Survellance Increase (%) Local max WTP of 10.52% for 80% survellance ncrease Only pont WTP>0 [3.0%, 16.9%] No WTP pont > 0 n condtonal model
15 Implcatons/Conclusons Resdents percevng: Lvestock ndustry groups (consumer groups) to provde accurate AW nfo. are less (more) WTP for survellance Consumer group or food preparaton enttes have nfluence on AW are more WTP for survellance Important dstncton between votng behavor & consumer demand Everyone gets to vote, regardless of tax stuatons or meat consumpton habts Resdents may beleve hgher survellance should come from reallocaton of publc funds. Gov t t survellance requres tax ncrease or reallocatons; voluntary or ndustry survellance lkely funded by food prce ncreases
16 QUESTIONS Tonsor s s webste (ncludes presentaton):