Steaks are high: COVID-19's impact on direct-to-consumer marketing in the Oklahoma beef industry

Abstract

June 2020 retail beef prices were 25.1% higher than prices in June 2019 (USDA ERS, 2020). The strain of the COVID-19 pandemic has had on the beef industry encouraged some beef producers to try marketing their products directly to consumers, and for many consumers, the idea of buying beef products from a local source to meet their needs is appealing (Brown, 2020). Trust is an integral part of relations between producers and consumers and impacts consumer behavior. This study explored Oklahoma beef producers' perceptions of the changes that have occurred in direct-to-consumer marketing and consumer communications in the Oklahoma beef industry during the COVID-19 pandemic using semi-structured interviews. This study consisted of 16 participants found via snowball sampling. These participants were over 18 years old, managed a beef operation located in Oklahoma, and used one or more channels of direct marketing to sell beef products directly to consumers. Findings from this study indicate consumer interest in local beef products has increased, and so have beef sales for producers marketing direct-to-consumers. Harvest dates, freezer shortages, and up-front cost of bulk beef are all limiting factors associated with COVID-19 and inhibit producers from keeping up with demand. Some producers have relied on social media to foster meaningful communications with consumers, while others rely on word-of-mouth and high-quality beef products to sell themselves. Some producers stopped marketing their beef products entirely due to their inability to keep up with demand. Consumers came to producers because of decreased availability on grocery store shelves, and have become repeat customers due to increased levels of trust and interest in the "story behind the beef". Future research could explore consumer perceptions of beef producers during the COVID-19 pandemic to compare and assess the effectiveness of the communications between these two groups. Producers should acknowledge the impact fostering relationships with new customers, whether in face-to-face interactions or online, has had on the success of their business.