The analysis of tray and vacuum packaging methods and how they affect beef steak sales

Concern about declining per capita consumption of beef has fostered a great deal of research into its causes, as well as possible ways of reversing the trend. In response to the decline in beef consumption, a number of technological developments have been introduced. One of them is a new type of packaging for fresh beef, vacuum packaging. Vacuum packaged beef has the advantages of increased convenience, safety and longer shelf life over the conventional tray packed beef. However, there is an acceptance problem due to color of the beef. A number of studies have estimated retail demand for individual food items. Most of them have addressed the demand for food items without looking specifically at the type of packing used when the product was sold. The type of packaging, though, could be a major factor in influencing the consumer. Although there have been studies of different types of packaging, only a few have focused on the packaging of fresh beef. This project explores consumers\u27 preferences toward two types of packaging for fresh beef. Scan data are a relatively new way of recording what is sold by stores. When each item is sold, it is passed over a scanner which reads a bar code on the package. The bar code contains information about the item being sold. Scan data present the opportunity to compare the patterns of actual customers\u27 purchases of fresh beef to vacuum packaged beef where the only difference is the packaging. In order to do this other variables in demand and supply equations must be fixed. These are variables such as shelf space, type of cut, brand name, price, income, consumer preferences and the store selling the beef. This allows one to look specifically at the packaging. There are two basic types of packaging for fresh beef. Tray packed refers to carcass and boxed beef that is cut in the store. The meat is then put on display in styrofoam trays wrapped in clear plastic. Vacuum packed fresh beef comes from the packing plant pre-wrapped in air tight packages ready for food shoppers. Beef in these packages only requires refrigeration. There are a number of important advantages to continuing with tray packed fresh beef. Consumers are familiar with this type of packaging. The color of the beef is particularly crucial. The visible bright red color is an indication of the quality and freshness of beef. Another advantage is that some older consumers like to have personal conversations with their butchers. They may feel this ensures they are getting the best cuts for their money. An in-store meat cutter is also able to provide food shoppers with custom cuts of meat. For example, diet conscious consumers and people with heart problems may still want to consume meat and want to have the extra fat trimmed away from the steak. There are some obvious advantages for the store using vacuum packaging. First, it cuts down on losses due to spoilage. Meat can only be kept for so long in the store before it must be discarded. Vacuum packaging extends the shelf life of the meat and allows the store to display it longer. Labor costs of the meat department can be reduced because the vacuum packed beef comes in consumer-ready packages. In addition, the store does not to have to allocate as much space for cutting facilities. Consumer advantages of using vacuum packed beef are also important. They do not have to freeze the meat within several days after purchase. When consumers buy the tray packed meat, it has to be consumed fairly soon, or it has to be frozen. The shelf life for vacuum packed beef is about the same as the frozen life for tray packed beef, about six months. Also, consumers have to let tray packed beef thaw or use a microwave before the piece of beef can be cooked. With vacuum packed meat, consumers store the beef in the refrigerator, not the freezer. All consumers need to do is remove the vacuum packing, and it is ready to cook. This can significantly reduce the consumer\u27s time cost of preparing the beef for a meal. Another advantage is that each steak is individually wrapped. This is a big help for consumers because the tray packed beef should be rewrapped for freezing. Perhaps the biggest disadvantage of the vacuum packaging is the color. Consumers understand that the red color of the meat in the tray pack indicates the beef is fresh. The meat gains a red tint because it is exposed to the oxygen in the air. Without oxygen, as with the vacuum packaging, the purple-red reduced myoglobin pigment is formed and persists throughout the product\u27s display life (Lynch, Kastner and Kropf). Beef in vacuum packaging has a faded brown color. Once the seal is broken, and the beef is exposed to oxygen in the air, it turns the familiar red color. Thus, consumers need to recognize that the brown color vacuum packed beef is normal. There has been research to find a synthetic material that can be injected into the meat that will help it gain a red tint in vacuum packaging. However, such a process would have to be approved by the FDA, and there is additional concern about consumer acceptance of any food that has been treated with chemical additives