Will Country-Of-Origin Labeling (Cool) Be 'Cool' For The U.S. Meat Industry?
AbstractThe study develops a Muth-type equilibrium displacement model that is able to estimate impacts of COOL on multistage beef production system and its trade relations. The model includes equilibrium conditions of each production stage with consideration of trade and market structure. A unique feature of this model is that it allows for retailer's oligopsony power separately from processor's market power. Simulation results indicate that the cost of COOL would outweigh the overall industry benefit unless COOL leads to low cost increases and more than a 10% increase in consumers' willingness to pay. The COOL provision is expected to have relatively smaller negative impact on cow-calf producers, backgrounders, and feedlots than on packers and retailers.
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Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 19934.
Date of creation: 2004
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