Corn Fed Beef a hit with Ontario consumers

Tuesday, January 10, 2012

by BETTER FARMING STAFF

There’s work ahead to raise awareness for a marketing program that promotes Ontario corn-fed beef but the product may resonate well with consumers, indicate results from a survey released on Friday.

Commissioned by the Ontario Cattle Feeders’ Association and presented at the organization’s annual convention in London, the Strategic Research Associates survey looked at consumer attitudes and opinions on beef. It is part of a three-year research project to explore the feasibility of building a marketing program around the idea of reducing the risk of E.coli 157 in beef products. 

John Vieira, founding partner of Strategic Research Associates, says the survey indicates that 81 per cent of the 1,032 rural and urban consumers contacted had never heard of the Ontario corn-fed beef program and another 14 per cent had heard of it but not bought its products.

On the other hand, just over 50 per cent of those surveyed would pay a premium for Ontario ground beef. More than 30 per cent were willing to pay at least 50 cents more per pound.

During his presentation to beef producers, Vieira recommended that the program step up its point-of-sale marketing activities and focus on social media marketing to increase consumer awareness of the product.

Jim Clark, the Association’s executive director, says that’s exactly what they plan to do over the next few months in partnership with Loblaw Companies Limited. Last year, the Association inked a five-year exclusive licensing agreement with the national grocer to supply its Ontario stores with Ontario corn-fed beef. The beef is currently available at store brands such as Zehrs, Valu-Mart, Bloor Street Market, and your Independent Grocer. During a presentation at the conference, Brad Porter, Loblaw senior category director meat and seafood conventional banners, announced plans to use the beef in other store brands in Ontario, such as Superstore and Loblaws with the goal of making it the chain’s everyday beef brand in the province.

Porter says the grocer will promote the beef through its regular marketing tools such as weekly sales flyers.

Survey results indicate that corn-fed beef lags slightly behind grass-fed beef in popularity with consumers. “It’s not a big leap for me to come back in two years and show you that this is flipped around,” with some marketing effort, Vieira says.

He also notes that two thirds of those surveyed were willing to pay a premium for beef safe from E.coli. While they will also pay more to know the origin of their beef, those surveyed rated grown in Canada as a more important attribute than grown in Ontario.

Survey results suggest mass market retailers such as large supermarket chains or fast food chains want, but are not yet ready, to meet consumer demands for specific food safety initiatives like proof for quality assurance. Currently, niche retailers and suppliers meet those needs, he says.

The survey results are statistically significant within plus or minus three per cent, 19 times out of 20.  

About 500 Ontario cattle producers have been approved to participate in the Association’s Ontario corn-fed beef marketing program. BF