Blockchain-based traceability and demand for U.S. beef in China
December 28, 2020 - Author: Wen Lin, David L. Ortega, Danielle Ufer, Vincenzina Caputo, Titus Awokuse
Lin, W., Ortega, DL., Ufer D., Caputo, V., Awokuse, T. (2020) "Blockchain-based traceability and demand for U.S. beef in China." Applied Economic Perspectives and Policy, 43(1), 341-354.
Amid stringent traceability requirements and a nearly 14-year ban, the U.S. beef industry is rebuilding its market presence in China. Blockchain technology offers a responsive means of meeting Chinese import traceability requirements while also addressing consumers' food safety concerns. We evaluate Chinese demand for U.S. beef and blockchain-based traceability and find that a sizeable segment of the market (37%) is willing to pay a premium for U.S. beef that is traceable using blockchains. Results indicate that investments in traceability systems that utilize blockchain technology may be an effective way for producers to capture a significant market share in China.