Increasing U.S. Hard Red Winter Wheat Competitiveness in Latin American Markets

R. Karina Gallardo () and Rodney Holcomb

No 21187, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The United States wheat sector leadership in world markets is facing serious challenges. Canada, Australia, Argentina, the European Union (EU), and the Former Soviet Union (FSU) are growing contenders for international wheat markets. Wheat buyers´ concerns about quality specifications and its consistency have intensified without precedents in the last years. The study focuses on identifying the attributes that wheat buyers most value at the moment of purchase. The study will be done in two stages. The first stage will focus in estimating preferences from actual wheat transactions from different grain-sheds in the HRW growing area. The second stage will focus on the demand from Latin American millers and will estimate their attribute preference and elicit willingness to pay. The second stage will start with Mexican millers, given their importance for the HRW exports. A hedonic price model will be used for the first stage. The second part of the study will attempt to elicit miller´s preferences by using a self explicated approach. Expected results are that the "easy-to-measure attributes": test weight, and protein levels; and all functionality characteristics such as bake absorption, farinograph peak time, farinograph stability, alveograph p/l ratio will be the most valued by the wheat customers. We hypothesize that millers will be willing to pay a premium if those attributes are present in desirable levels. The information should provide insight into the efforts being made by wheat marketing agencies and the U.S. Wheat Associates to promote quality-based marketing of wheat to domestic and foreign millers. Discussion may also include the impacts of quality-based marketing on U.S. share of the world wheat market.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 18
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21187

DOI: 10.22004/ag.econ.21187

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