 Impacts of Retail and Export Demand on United States Cattle ProducersMelissa G. S. McKendree, Glynn Tonsor, Ted Schroeder and Nathan Hendricks American Journal of Agricultural Economics, 2020, vol. 102, issue 3, 866-883 Abstract: Despite its importance in many decisions throughout agriculture, limited empirical work has quantified how changes in primary demand impact producers operating at different levels of vertically‐connected industries. A structural system of equations was estimated to quantify the impacts of U.S. retail and export beef demand on fed and feeder cattle demand and supply. Increases in retail and export demand positively impact both feeder and fed cattle producers. The estimated transmission elasticities suggest that shifts in retail and export demand, whether positive or negative, accrue proportionally more to feeder cattle producers than fed cattle producers. Using estimates from previous literature of the effect of generic advertising on beef demand, simulation results suggest feeder and fed cattle producers would benefit from increasing beef checkoff assessments from $1 to $2. Furthermore, an increase in export demand of more than 3.5% from observed values would cover aggregate costs of implementing source and age verification. While primary suppliers are often not directly involved in primary demand activities in vertically‐connected industries, this study highlights the key economic value for primary suppliers to support demand enhancing activities. Date: 2020 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:ajagec:v:102:y:2020:i:3:p:866-883 Access Statistics for this article More articles in American Journal of Agricultural Economics from John Wiley & Sons |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.