Effects of Country-of-Origin Labeling on Meat Producers and Consumers
AbstractAlthough several studies have estimated the costs of country-of-origin labeling (COOL), no previous study has documented how these costs will be distributed across the livestock sector or how producer and consumer welfare will be affected. This analysis presents an equilibrium displacement model of the farm, wholesale, and retail markets for beef, pork, and poultry that documents how producers and consumers will be affected by COOL. Findings reveal that as the costs of COOL are shifted from the producer to the processor and retailer, producers are made increasingly better off while consumers are made increasingly worse off. Further, an increase in aggregate consumer demand of 2% to 3% is likely sufficient to offset lost producer welfare due to COOL costs.
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Bibliographic InfoArticle provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.
Volume (Year): 29 (2004)
Issue (Month): 02 (August)
beef; country of origin; equilibrium displacement model; labeling; pork; poultry; Consumer/Household Economics;
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