Italy: Determinants of Wheat Import Demand

Daniel J. Plunkett

No 278720, Staff Reports from United States Department of Agriculture, Economic Research Service

Abstract: Italy imports wheat from outside the European Community due t the demand for the highest quality wheat available. The protection afforded by the EC's variable levy results in U.S. and Canadian wheat costing 50 percent more in the Italian market than domestic EC wheat. However, U.S. and Canadian wheats have intrinsic characteristics which meet the exact requirements for certain purposes. These include high protein, appropriate color (for durum wheat), and, most important, a wide range of gluten performance standards. Italian importers pay not only the wheat price for the weight of any impurities in the shipment, they also must pay insurance and freight, as well as the variable levy. Thus dockage is considered an economic factor in their purchasing decisions, rather than a technical impediment in the milling process. Dockage and foreign material are less important to Italian traders and millers when the protein and gluten are satisfactory, that is, when their customers are pleased with the performance quality of the product.

Keywords: Crop Production/Industries; Demand and Price Analysis; International Relations/Trade (search for similar items in EconPapers)
Pages: 49
Date: 1993-11
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerssr:278720

DOI: 10.22004/ag.econ.278720

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