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

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  • Charlebois, Pierre
  • Gagne, Stephan
  • Gendron, Carole
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    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.

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    Bibliographic Info

    Paper provided by Agriculture and Agri-Food Canada in its series Economic and Market Information with number 47133.

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    Date of creation: Jul 2008
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    Handle: RePEc:ags:aaacem:47133

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    Related research

    Keywords: liberalization; benefits; red meats; pork; beef; Japan; Korea; Mexico; Agribusiness; Agricultural and Food Policy; International Relations/Trade; Livestock Production/Industries;

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    1. Rae, Allan N. & Nixon, Chris & Gardiner, Peter, 1998. "The Pacific Rim Beef Trade: Impacts Of Lifting Foot-And-Mouth Disease Trade Barriers," Agricultural Policy Papers 23684, Massey University, Centre for Applied Economics and Policy Studies.
    2. Meilke, Karl D. & Hayes, Dermot J. & Surry, Yves R. & Fabiosa, Jacinto F. & Fuller, Frank H., 2001. "Trade Liberalization In The International Pork Sector: Analysis Of Zero-For-Zero Option," International Trade in Livestock Products Symposium, January 18-19, 2001, Auckland, New Zealand 14546, International Agricultural Trade Research Consortium.
    3. Jacinto F. Fabiosa, 2005. "Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications," Center for Agricultural and Rural Development (CARD) Publications 05-wp400, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Jacinto F. Fabiosa, 2005. "Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications," Food and Agricultural Policy Research Institute (FAPRI) Publications 05-wp400, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    5. Miljkovic, Dragan, 2004. "Trade Liberalization And Changing Composition And Quality Of Imports In Japanese Beef Import Markets," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34798, Southern Agricultural Economics Association.
    6. Marsh, John M., 1999. "U.S. Beef Trade And Price Relationships With Japan, Canada, And Mexico," Trade Research Center Policy Issues Papers 29165, Montana State University, Department of Agricultural Economics and Economics.
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