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Economic Analysis of the Liberalization of Red Meat Markets in the Pacific Region from 1988 to 2007

Pierre Charlebois, Stephan Gagne and Carole Gendron

No 47133, Economic and Market Information from Agriculture and Agri-Food Canada

Abstract: The liberalization of red meat (beef and pork) markets since 1988 is a good example of government action that has led to significant gains for the Canadian and American agri-food industries. Japan, South Korea and Mexico are the main countries that have liberalized their red meat markets since 1988. This industry has also benefited from the agreement between Canada and the United States. It has also made gain from the liberalization of the pork market in Australia and the Philippines, and the beef market in Indonesia. This analysis captures the impact on the price received by farmers as well as on Canadian production in the absence of these increased market access. The combination of lower prices and lower production would have caused annual average decreases in farm cash receipts drawn from the cattle and hog market equal to C$776 million and C$486 million, respectively, for a grand total of C$25.7 billion over this 20-year period (1988-2007) for the entire agriculture industry. Additionally, the value added of the red meat processing industry would have dropped by an average of C$432 million per year, for a total loss of C$8.6 billion. Finally, the value of exports of the red meat supply chain would have dropped by an average of C$1.044 billion per year, for a grand total of C$21 billion over this 20-year period.

Keywords: liberalization; benefits; red meats; pork; beef; Japan; Korea; Mexico; Agribusiness; Agricultural and Food Policy; International Relations/Trade; Livestock Production/Industries (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-sea
Date: 2008-07
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