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Impacts Of Corn And Soybean Meal Price Changes On The Demand And Supply Of U.S. Broilers

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  • Pothidee, Ajchara
  • Allen, Albert J.
  • Hudson, Darren

Abstract

This study examined factors that affected the prices of corn and soybean meal and the impact of these prices on market demand and supply for U.S. broilers. An econometric model consisting of four structural equations and one identity was formulated and estimated using quarterly data from 1976 to 1996. One of the results reveals that soybean meal price flexibilities with respect to soybean prices were highly elastic in both the short and long run. This means that changes in soybean prices have a relatively large effect on meal price. In contrast, meal price and oil price moved in opposite directions. An increase in oil price encourages an increase in crushing oilseeds, resulting in an increase in both oil and meal supply. In addition, results indicated that a sustained increase in corn and soybean meal prices will have an immediate impact on broiler quantities and prices.

Suggested Citation

  • Pothidee, Ajchara & Allen, Albert J. & Hudson, Darren, 1999. "Impacts Of Corn And Soybean Meal Price Changes On The Demand And Supply Of U.S. Broilers," 1999 Annual meeting, August 8-11, Nashville, TN 21602, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea99:21602
    DOI: 10.22004/ag.econ.21602
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    References listed on IDEAS

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    1. Walter N. Thurman, 1987. "The Poultry Market: Demand Stability and Industry Structure," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(1), pages 30-37.
    2. Jean-Paul Chavas, 1983. "Structural Change in the Demand for Meat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 148-153.
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    Cited by:

    1. Park, Hwanil & Fortenbery, T. Randall, 2007. "The Effect of Ethanol Production on the U.S. National Corn Price," 2007 Conference, April 16-17, 2007, Chicago, Illinois 37565, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    2. Pluske, Johanna M. & Lindner, Robert K., 2001. "Canola – Where to for WA Agriculture?," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125865, Australian Agricultural and Resource Economics Society.
    3. Chen, Wei & Marchant, Mary A. & Song, Baohui, 2009. "Impacts of China's Food Consumption on U.S. Soybean Exports," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46820, Southern Agricultural Economics Association.
    4. Hussein, Ahmed, 2017. "U.S. Broiler, Turkey And Total Poultry Supply Response To Corn Feed Prices," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252710, Southern Agricultural Economics Association.

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    Keywords

    Demand and Price Analysis;

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