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Impact on South African meat demand of a possible free trade agreement with the European Union

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  • Badurally Adam, M.S.A.
  • Darroch, Mark A.G.
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    Abstract

    The Rotterdam model is used to estimate a demand system for South African (SA) beef, chicken, mutton and pork during 1971-1995 and identify the potential impacts on demand for these meat types of a Free Trade Agreement (FTA) between SA and the European Union. Conditional cross-price Slutsky elasticity estimates show that for a given 1% change in each meat price under an FTA, the beef price change would have the largest impact on consumption of the other meats. The net effect of the FTA would depend on the extent to which different meat prices fall if meat imports increase. Import competition may be felt particularly from poultry imports as most of SA beef imports are of a low quality.

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    Bibliographic Info

    Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

    Volume (Year): 36 (1997)
    Issue (Month): 4 (December)
    Pages:

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    Handle: RePEc:ags:agreko:54451

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    Web page: http://www.aeasa.org.za/
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    Related research

    Keywords: International Relations/Trade; Livestock Production/Industries;

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    1. P. W. Uys, 1986. "Demand for Meat in South Africa: A Non-additive Dynamic Linear Expenditure Model," South African Journal of Economics, Economic Society of South Africa, vol. 54(2), pages 129-137, 06.
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    Cited by:
    1. Taljaard, Pieter R. & van Schalkwyk, Herman D. & Alemu, Zerihun Gudeta, 2006. "Choosing between the AIDS and Rotterdam models: A meat demand analysis case study," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(2), June.

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