Decision-Making in the Livestock Supply Chain

Decision-making is critical in the livestock supply chain. Understanding how producers and consumers make their decisions requires a sufficient understanding of the process of their decision-making behavior. Based on the processing resources, consumers or producers’ choices could be affected by different processes: affective process, cognitive process or both affective and cognitive processes simultaneously. Applying a variety of experiment methods, this dissertation investigates how producers and consumers make their choices by exploring how the product attributes, and the characteristics of the decision-maker, affect consumers and producers’ choice-making behaviors. In the first essay, I implemented a discrete choice experiment and estimated random parameter logit models with error component to analyze Chinese consumer willingness to pay (WTP) for domestic and imported beef flank labeled with the new quality grades and other relevant beef labels. Results suggest foreign beef producers could compete most closely with domestic beef if it was labeled as premium quality. In the second essay, I investigate Chinese consumer WTP for beef from different countries and the role of ethnocentrism, country image, and product image on the WTP. Results suggest that foreign beef exporters could promote their beef in China by advertising in accordance with positive country and product images. In the third essay, I attempt to determine hog farmers’ motivations to adopt genomics for breeding hogs that are more resistant to the disease. In doing so I focus on the impact of their risk preferences and related peer effects that might influence potential adoption. This case study provides implications for local governments and companies trying to promote new technologies. In the fourth essay, I investigate how social influence affects producers’ behavior under disease outbreak using social network analysis. In particular, I focus on how information flows during an epidemic such as African Swine Fever. Findings provide insights into how information flows and how actors communicate during a situation of crisis. This can be used by stakeholders (1) to disseminate information; and (2) to avoid the spread of rumors and false information.