A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability

https://ir.library.oregonstate.edu/downloads/k3569900j

Biodiversity conservation: The key is reducing meat consumption

U.S. livestock production has shifted to much larger and more specialized farms, and the various stages of input provision, farm production, and processing are now much more tightly coordinated through formal contracts and shared ownership of assets. Important financial advantages have driven these structural changes, which in turn have boosted productivity growth in the livestock sector. But structural changes can also generate environmental and health risks for society, as industrialization concentrates animals and animal wastes in localized areas. This report relies on farm-level data to detail the nature, causes, and effects of structural changes in livestock production.

/pdf/the-transformation-of-u-s-livestock-agriculture-scale-39f00kzzn6.pdf

The Transformation of U.S. Livestock Agriculture Scale, Efficiency, and Risks

Recent work by agricultural economists has failed to adequately identify why consumers desire country-of-origin labeling, a key piece of information needed to determine whether a market-failure exists. This paper brings to the attention of agricultural economists a sizable body of literature on country-of-origin effects from the marketing and business disciplines. Based on this literature, we draw a distinction between several consumer motivations for origin labels and we identify which of these is cause for public policy. We propose several research questions that require answers if the consequences of country-of-origin labeling policy are to be fully understood.

https://www.jstor.org/stable/pdfplus/3700760.pdf

Consumer Behavior, Public Policy, and Country-of-Origin Labeling

Agriculture in the twentieth century was characterized first and foremost by technological innovation that began in the industrialized world and spread to the developing countries as the Green Revolution. This revolution in biological, chemical, and mechanical technology made it possible for agricultural production to grow faster than the demand for food despite a rapidly growing world population. The result was a decline in real agricultural commodity prices throughout this era-a trend that is expected by many researchers to continue at least into the early part of the twenty-first century (Antle et al., Johnson 1998, Rosegrant and Ringer). At the same time, virtually all governments intervened in their agricultural sectors through a wide array of policies, resulting in a pattern of net taxation of agriculture in low-income countries and subsidization of agriculture in high-income countries. This set of events, and the agricultural economics literature that was generated to explain them, is what I will refer to here as the economics of agriculture in the twentieth century. A stylized demand-andsupply model of an agricultural market can be used to represent these relationships, with output prices P, income I, population N, factor prices W, capital K, technology T, and government policy G:

https://www.jstor.org/stable/info/1244078

The New Economics of Agriculture

Concerns about the negative effects of U.S. meat and livestock imports on domestic livestock prices have increased interest in country-of origin labeling (COOL) legislation. An equilibrium displacement model is used to estimate short-run and long-run changes in equilibrium prices and quantities of meat and livestock in the beef, pork, and poultry sectors resulting from the implementation of COOL. Retail beef and pork demand would have to experience a one-time, permanent increase of 4.05% and 4.45%, respectively, so that feeder cattle and hog producers do not lose producer surplus over a 10-year period.

https://www.jstor.org/stable/info/40987216

Distributional Impacts of Country-of-Origin Labeling in the U.S. Meat Industry

A systems model was estimated to determine the effects of declining U.S. retail beef demand on farm-level beef prices and production. Retail beef demand declined by nearly 66% from 1976 to 1999. Results indicate autonomous shifts in retail demand significantly impacted farm-level demands and production. Based on equilibrium multipliers, the 1976–99 reduction in beef demand decreased real slaughter cattle prices and production by 32.1% and 11.2%, respectively. Real feeder cattle prices and production decreased by 8.0% and 22.6%, respectively. Combining the decreases in farm prices and production, slaughter and feeder cattle producers experienced a real revenue reduction of $13.3 billion (61%) due to the long-term decline in demand.

Impacts of Declining U.S. Retail Beef Demand on Farm-Level Beef Prices and Production

A partial adjustment model with monthly lag structures on expected output and input prices is used to estimate intertemporal supply behavior of fed beef. Previous research has provided conflicting supply elasticities. The present work reconciles the conflicts by integrating different lengths of run into cattle marketing and placement decisions. For example, the model dynamics incorporate short-run changes in cattle asset values and long-run adjustments in resource use. Empirical results provide no evidence of short-run supply fixity; supply elasticities switch from negative to positive over time.

Estimating Intertemporal Supply Response in the Fed Beef Market

In May 2003, a beef cow in the Province of Alberta tested positive for bovine spongiform encephalopathy (BSE or mad cow disease). In December of 2003, a dairy cow in the state of Washington also tested positive for BSE. These discoveries disrupted cattle and beef trade in North America and major export markets. We examine the effects of these two North American BSE events on U.S. fed and feeder cattle prices. The results indicate that the demand for U.S. beef was affected to a much greater degree by the reactions of foreign governments to the BSE announcements than by the reactions of U.S. households.

Effects of North American BSE Events on U.S. Cattle Prices

An econometric model is used to estimate real wholesale-retail marketing margins for beef and pork. From 1970 to 1998, these margins increased by 27% and 149%, while farm-wholesale margins declined. Wholesale-retail (WR) marketing margin increases have caused livestock producers to focus on the retail sector as a contributor to declining real livestock prices. Increases in WR margins may be related to increased demand and costs of value-added food products/services as well as increased market concentration in the retail grocery sector. Results indicate that retail factors, and to a lesser extent meat processing factors, significantly increased WR margins and decreased livestock prices.

Wholesale-Retail Marketing Margin Behavior in the Beef and Pork Industries

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