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Differences in Production Costs Across Compliance Scenarios for Canadian Cow-Calf Producers Accessing the EU Market

Mandy Gabruch and Eric Micheels

International Journal on Food System Dynamics, 2020, vol. 11, issue 03

Abstract: Using the 2016 Canada EU Trade Agreement as context, we develop a systems dynamics model to assess changes in the cost of production from a production system oriented toward the North American market where growth enhancing products are allowed, to a European market where these production practices are banned. We outline four different compliance scenarios and use data from western Canadian institutions to estimate how the cost of production for cow-calf producers changes in the different compliance scenarios. We find that compliance costs ranged from $2.13 per head for those firms who already had forgone growth enhancing products and were maintaining detailed records to $34.78 per head for farms who were least compliant with EU standards.

Keywords: International Relations/Trade; Livestock Production/Industries (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijofsd:346009

DOI: 10.22004/ag.econ.346009

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