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Ethanol and Meat in the U.S.: A Multi-Market Analysis

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  • Bhattacharya, Suparna
  • Azzam, Azzeddine M.
  • Mark, Darrell R.

Abstract

Since corn is the primary feedstock used for producing ethanol in the U.S., and ethanol production yields byproducts that can be fed to livestock in combination with corn, addressing the effect of ethanol production on meat markets should consider not only demand and supply interdependence between corn, ethanol, and ethanol byproducts; but also demand and supply interdependence between different types of meats. This paper develops a multi-market equilibrium displacement model to account for the interdependence. Six markets are considered: beef, pork, poultry, corn, ethanol, and ethanol byproducts. Results show that poultry is the most sensitive to ethanol production, followed by beef and pork.

Suggested Citation

  • Bhattacharya, Suparna & Azzam, Azzeddine M. & Mark, Darrell R., 2009. "Ethanol and Meat in the U.S.: A Multi-Market Analysis," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49371, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea09:49371
    DOI: 10.22004/ag.econ.49371
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    References listed on IDEAS

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    1. Lusk, Jayson L. & Norwood, F. Bailey, 2005. "Modeling Beef Quality Heterogeneity," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 37(3), pages 603-618, December.
    2. Shapouri, Hosein & Gallagher, Paul & Graboski, Michael S., 2002. "USDA's 1998 Ethanol Cost-of-Production Survey," Agricultural Economic Reports 308481, United States Department of Agriculture, Economic Research Service.
    3. Anderson, David P. & Anderson, John D. & Sawyer, Jason, 2008. "Impact of the Ethanol Boom on Livestock and Dairy Industries: What Are They Going to Eat?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-7, August.
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    6. Tyner, Wallace E. & Thaeripour, Farzad, 2007. "Future biofuels policy alternatives," Biofuels, Food and Feed Tradeoffs Conference, April 12-13, 2007, St, Louis, Missouri 48777, Farm Foundation.
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    Cited by:

    1. Tepe, Fatma Sine, 2010. "Biofuel policy and stock price in imperfectly competitive markets," ISU General Staff Papers 201001010800002642, Iowa State University, Department of Economics.
    2. Hao, Na & Colson, Gregory & Seong, Byeongchan & Park, Cheolwoo & Wetzstein, Michael, 2015. "Drought, ethanol, and livestock," Energy Economics, Elsevier, vol. 49(C), pages 301-307.
    3. Dizyee, Kanar & Baker, Derek & Rich, Karl M., 2017. "A quantitative value chain analysis of policy options for the beef sector in Botswana," Agricultural Systems, Elsevier, vol. 156(C), pages 13-24.

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