scholarly journals Effects of Country of Origin Labeling in the U.S. Meat Industry with Imperfectly Competitive Processors

2009 ◽  
Vol 38 (3) ◽  
pp. 406-417 ◽  
Author(s):  
Chanjin Chung ◽  
Tong Zhang ◽  
Derrell S. Peel
Keyword(s):  
Price Elasticity ◽  
Country Of Origin ◽  
Import Price ◽  
Consumer Welfare ◽  
Domestic Demand ◽  
Meat Industry ◽  
Equilibrium Displacement Model ◽  
Country Of Origin Labeling ◽  
Imperfectly Competitive ◽  
The U.S

The study examines the impacts of implementing mandatory country of origin labeling (COOL) on producer and consumer welfare in the U.S. meat industry. The equilibrium displacement model developed in this study includes twenty-nine equations representing retail-, processing-, and farm-level equilibrium conditions for the beef, pork, and chicken industries. Unlike previous studies, the model allows trade between domestic- and foreign-origin products and considers the imperfectly competitive market structure of meat processers. Empirical results show that without a significant increase in domestic meat demand, producers are not expected to benefit from the mandatory COOL implementation. Results of a sensitivity analysis indicate that consumers tend to bear more COOL costs than producers, as the own-price elasticity becomes more inelastic, and that producers’ benefits increase as the elasticity of domestic demand becomes more elastic with respect to the price of imported products. The existence of market power in upstream and downstream markets of processors negatively affects both consumer and producer surplus. One implication of our findings is that U.S. beef and pork producers’ promotion and advertising programs would be successful in expanding domestic demand when the programs make the own-price elasticity of domestic demand more inelastic and the cross-price elasticity of domestic demand more elastic with respect to import price.

scholarly journals Global Welfare Impacts of U.S. Meat Promotion Activities

2009 ◽  
Vol 38 (3) ◽  
pp. 418-430 ◽  
Author(s):  
Shida Rastegari Henneberry ◽  
Joao E. Mutondo ◽  
B. Wade Brorsen
Keyword(s):  
Imperfect Competition ◽  
Meat Industry ◽  
Supply Source ◽  
Welfare Impacts ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
Beef Producers ◽  
Global Welfare ◽  
Meat Markets ◽  
The U.S

An equilibrium displacement model of the U.S. meat markets is used to measure the potential impacts of promotion investment, differentiating meats by types and by supply source, taking into account the U.S. participation in global meat markets, and considering imperfect competition in the meat industry. The increase in U.S. producer welfare resulting from a 10 percent increase in promotion ranges from -$1.29 million to $2.60 million for U.S. beef producers and from -$0.96 million to $1.67 million for U.S. pork producers, depending primarily on the advertising elasticity used.

scholarly journals Crossing Borders: The Case Of Mexican Tomatoes

2011 ◽  
Vol 7 (6) ◽  
pp. 39-48
Author(s):  
Nita Paden
Keyword(s):  
United States ◽  
Homeland Security ◽  
Country Of Origin ◽  
The United States ◽  
The Third ◽  
Country Of Origin Labeling ◽  
Product Strategies ◽  
The U.S

The case involves distributors who import Mexican produce into the United States. To-Mex faces several problems. First, U.S. homeland security is at an all time high and is likely to continue growing tighter. The potential for delays at customs is significant. Second, Mexican produce has image issues in the U.S. market. Some American consumers have the perception that Mexican produce may not be safe to eat. Changing those perceptions is critical. The third issue relates to product strategies, including a possible move from predominantly field grown tomatoes to greenhouse operations, possible development of consumer brands for produce, and the potential effects of country of origin labeling on consumer produce preferences.

scholarly journals Country of Origin Labeling: Evaluating the Impacts on U.S. and World Markets

2009 ◽  
Vol 38 (3) ◽  
pp. 397-405 ◽  
Author(s):  
Keithly G. Jones ◽  
Agapi Somwaru ◽  
James B. Whitaker
Keyword(s):  
Equilibrium Model ◽  
Country Of Origin ◽  
Trade Flows ◽  
Production Costs ◽  
Agricultural Marketing ◽  
Country Of Origin Labeling ◽  
World Markets ◽  
Additional Production ◽  
Marketing Service ◽  
The U.S

A provision of the Food, Conservation, and Energy Act of 2008 requires country of origin labeling (COOL) for certain agricultural commodities. To comply with the law, producers, processors, and retailers face additional production costs associated with labeling, separating, and tracking commodities. Using estimated costs provided by the U.S. Department of Agriculture's Agricultural Marketing Service (AMS), we simulate the impacts of mandatory COOL on U.S. and global agricultural markets using a global static general equilibrium model (STAGEM). The results show resource adjustments that lead to decreases in production, consumption, and trade flows. The results assume no demand premium for labeled commodities relative to unlabeled commodities.

The Sustainable Forestry Initiative’s impact on stumpage markets in the US South

2005 ◽  
Vol 35 (8) ◽  
pp. 2056-2064 ◽  
Author(s):  
Roger Brown ◽  
Daowei Zhang
Keyword(s):  
Consumer Surplus ◽  
Sustainable Forestry ◽  
Consumer Welfare ◽  
Us South ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
The Us ◽  
Producer Surplus ◽  
Nonindustrial Private Forest ◽  
Displacement Model

Using survey data and an equilibrium displacement model, we estimate the market and economic impacts of the American Forest and Paper Association's Sustainable Forestry Initiative (SFI) on stumpage markets in the US South. We examine four timber product markets: softwood pulpwood, softwood sawtimber, hardwood pulpwood, and hardwood sawtimber. In each market we calculate changes in producer and consumer welfare using the equilibrium displacement model that accounts for reductions in timber inventories caused by SFI compliance. We find that SFI compliance costs the US South's economy about $36 million annually. SFI-compliant stumpage producers lose more than $33 million each year in producer surplus as a result of SFI compliance, and consumers lose about $12 million annually in consumer surplus due to higher product prices. These costs are offset partially by benefits to nonindustrial private forest producers, non-SFI-compliant industry producers, and public forest producers, who collectively gain about $10 million in producer surplus annually as a result of higher stumpage prices.

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