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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.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49371.

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Date of creation: 2009
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Handle: RePEc:ags:aaea09:49371

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Keywords: Demand and price analysis; Ethanol; U.S. livestock sectors; Demand and Price Analysis;

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  1. Tyner Wallace E., 2007. "Policy Alternatives for the Future Biofuels Industry," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-13, December.
  2. 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(02), August.
  3. Silvia Secchi & Bruce A. Babcock, 2007. "Impact of High Crop Prices on Environmental Quality: A Case of Iowa and the Conservation Reserve Program," Center for Agricultural and Rural Development (CARD) Publications 07-wp447, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  4. Lusk, Jayson L. & Norwood, F. Bailey, 2005. "Modeling Beef Quality Heterogeneity," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(03), December.
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