Effects of Bovine Spongiform Encephalopathy Outbreaks on U.S. Cattle and Beef Prices

Jeremy W. Mattson and Won W. Koo

Review of Agricultural Economics, 2007, vol. 29, issue 4, pages 734-748

Abstract: U.S. trade of beef and live cattle declined substantially after the discoveries of bovine spongiform encephalopathy (BSE) in Canada and the United States in 2003. In this study, an econometric model is developed to estimate the effects of lifting trade restrictions on U.S. cattle and beef prices. Results show that increases in imports of Canadian cattle and beef would lower prices of slaughter steers, feeder steers, and retail beef, but these negative impacts would be more than negated by the positive effects on prices that would result if beef exports return to near pre-BSE levels. Copyright 2007 American Agricultural Economics Association

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