RA meat premium unlikely

Regenerative agriculture produced meat is not a big hit with overseas consumers.

In Business2 Minutes

REGENERATIVE AGRICULTURE produced meat is not a big hit with overseas consumers.

B+LNZ has identified regenerative farming as a potential selling point for New Zealand meat overseas. However, the International Food Information Council (IFIC) has found United States customers may not be willing to pay a premium for meat with claims of regenerative ag processes being used.

The IFIC released their survey findings, Consumer Perspectives on Regenerative Agriculture, in February.

The survey was made up of 1000 interviews conducted among adults in December 2021.

Results found over half of the respondents had heard of organic farming, crop rotation and sustainable farming, however fewer were familiar with terms like soil health (33%), and regenerative ag (19%).

People with college degrees and those making more than $80,000/year were more likely to say they had heard of regenerative ag than those without college degrees, and those making less than $40,000/yr respectively.

Participants were given a definition for regenerative ag practices. This was “farming that aimed to restore and maintain optimal levels of nutrients and microorganisms in the soil”, before they continued with the survey.

With definition in hand, respondents were provided with the following scenario.

Results showed most people were not willing to pay more for a product made with regenerative ag.

Two thirds of participants said they would be either highly likely or somewhat likely to buy the cheaper option.

Participants were asked when deciding whether to buy a food or beverage, how important different factors were in their decision. Overall healthfulness of the food ranked highest, followed by the vitamin and mineral content of the food. One in four said regenerative ag was a very important factor when choosing.

The two top practices for human health were choosing foods and beverages made without the use of pesticides, and with environmentally sustainable farming.

For the full survey: