IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/1998010108000018184.html
   My bibliography  Save this paper

The benefits and costs of transporting an identity preserved product from Iowa to Taiwan

Author

Listed:
  • Yu, Tun-Hsiang

Abstract

High oil corn (HOC) is a genetically improved corn variety that has recently gained importance as an animal feed ingredient in the U.S. This study evaluates the economics of exporting HOC from the U.S. to Taiwan. It focuses attention on two types of HOC: HOC[Subscript a] and HOC[Subscript b]. A linear programming model was used to obtain the potential added value of the two types of HOC. The additional cost of exporting HOC includes additional production, identity preservation and seed costs to U.S. grain suppliers. These costs were obtained from data released by U.S. firms which develop and distribute HOC. The decision-making rule for a grower in Taiwan is based on the difference between the potential added value and the premium he has to pay. The feed targets are broilers and swine. The prices of feed ingredients, the nutritional requirements of the animals and the stevedoring and cargo handling data were gathered from The Taiwan Livestock Research Institute and Taiwan Provincial Department of Agriculture and Forestry.;The results indicate that the potential added values of both types of HOC are significantly higher when added to the diets of broilers and swine weighing 6-10 kilograms than when used in the feed of swine weighing 11-100 kilograms. The findings of the paper also indicate that at prices of 50.7 cents per bushel importing HOC[Subscript a] is non-profitable for the Taiwanese livestock grower. This study takes a look at some of the non-measurable benefits of importing HOC[Subscript a] such as its ability to alleviate problems of heat stress and nutritionally inconsistent diets to explain why Taiwan does in fact import HOC[Subscript a]. The study concludes that the benefits of importing HOC are realized only in certain circumstances that include the quality of the differentiated grain, the animal for which HOC is intended to be used and the premium charged to the importers.

Suggested Citation

  • Yu, Tun-Hsiang, 1998. "The benefits and costs of transporting an identity preserved product from Iowa to Taiwan," ISU General Staff Papers 1998010108000018184, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:1998010108000018184
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/a2e47917-5f4e-4d49-bd5b-4d2195adbf12/content
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brester, Gary W. & Lhermite, Pascale & Goodwin, Barry K. & Hunt, Melvin C., 1993. "Quantifying The Effects Of New Product Development: The Case Of Low-Fat Ground Beef," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(2), pages 1-12, December.
    2. McVey, Marty Jay, 1996. "Valuing quality differentiated grains from a total logistics perspective," ISU General Staff Papers 1996010108000012326, Iowa State University, Department of Economics.
    3. George W. Ladd & Marvin B. Martin, 1976. "Prices and Demands for Input Characteristics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(1), pages 21-30.
    4. Darrell L. Hueth & Richard E. Just, 1987. "Policy Implications of Agricultural Biotechnology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 426-431.
    5. Thomas J. Voon & Geoff W. Edwards, 1992. "Research Payoff from Quality Improvement: The Case of Protein in Australian Wheat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 564-572.
    6. Chang, Ching-Cheng & Eddleman, Bobby R. & McCarl, Bruce A., 1991. "Potential Benefits Of Rice Variety And Water Management Improvements In The Texas Gulf Coast," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-9, December.
    7. Catherine M. Lemieux & Michael K. Wohlgenant, 1989. "Ex Ante Evaluation of the Economic Impact of Agricultural Biotechnology: The Case of Porcine Somatotropin," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 903-914.
    8. George W. Ladd & Craig Gibson, 1978. "Microeconomics of Technical Change: What's a Better Animal Worth?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 236-240.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McVey, Marty Jay, 1996. "Valuing quality differentiated grains from a total logistics perspective," ISU General Staff Papers 1996010108000012326, Iowa State University, Department of Economics.
    2. Tun-Hsiang Yu & C. Phillip Baumel & Connie L. Hardy & Marty J. McVey & Lawrence A. Johnson & Jerry L. Sell, 2001. "Impacts of six genetic modifications of corn on feed cost and consumption of traditional feed ingredients," Agribusiness, John Wiley & Sons, Ltd., vol. 18(1), pages 115-127.
    3. Tun-Hsiang Yu & C. Phillip Baumel & Marty J. McVey & Jerry L. Sell, 2001. "Economics of the use of imported U.S. high oil corn in swine and poultry rations in Taiwan," Agribusiness, John Wiley & Sons, Ltd., vol. 17(4), pages 539-556.
    4. Smed, Sinne & Hansen, Lars Garn, 2018. "Consumer Valuation of Health Attributes in Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(2), May.
    5. Richards, Timothy J. & Jeffrey, Scott R., 1995. "Hedonic Pricing of Dairy Bulls - An Alternative Index of Genetic Merit," Project Report Series 24035, University of Alberta, Department of Resource Economics and Environmental Sociology.
    6. Voon, Thomas Jan P., 1996. "Evaluating Quality Improvement in Nonhomogeneous Agricultural Commodities: The Case of Australian Beef," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(02), pages 1-7, August.
    7. Wilson, William W. & Crabtree, John A., 1983. "Price/Quality Relationships in the Malting Barley Market," Agricultural Economics Reports 23188, North Dakota State University, Department of Agribusiness and Applied Economics.
    8. N. Koffi Amegbeto & Victor M. Manyong & Ousmane Coulibaly & Robert Asiedu, 2008. "Estimating market demand for fresh yam characteristics using contingent valuation: implications for crop breeding and production choices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 349-363, November.
    9. Lei, Lei, 2018. "Effects of trade policy on technological innovation in agricultural markets - implications for the developing economies," IDE Discussion Papers 687, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    10. Devadoss, S. & Araji, A. A., 1993. "Impacts 0F Breeding And Crop Management Research In Classes Of Wheat On Economic Returns And Exports," A.E. Research Series 305100, University of Idaho, Department of Agricultural Economics and Rural Sociology.
    11. Kim, Yun-Shik & Sumner, Daniel A., 2005. "Measuring Research Benefits With Import Ban Restrictions, Quality Changes, Non-Market Influences On Adoption And Food Security Incentives," 2005 Annual meeting, July 24-27, Providence, RI 19148, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Havlicek, Joseph, Jr., 1990. "Role Of Economics And Other Social Sciences In Biotechnology Research," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(1), pages 1-4, July.
    13. Javelosa, Josyline C. & Moss, Charles B. & Schmitz, Andrew & Seale, James L., Jr., 2006. "Derived Demand for Food Nutrients as Welfare Indicator of Biofortified Crops: High-Iron Rice in the Philippines," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35405, Southern Agricultural Economics Association.
    14. Richards, Timothy J. & Padilla, Luis, 2001. "Commodity R&D, Patenting, And Promotion," 2001 Annual meeting, August 5-8, Chicago, IL 20497, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Ward, Clement E. & Lusk, Jayson L. & Dutton, Jennifer M., 2008. "Implicit Value of Retail Beef Product Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-18.
    16. DESBOIS, Dominique, 2015. "La qualité du lait a-t-elle un prix ? Une estimation hédonique de la valeur des attributs spécifiques du lait de vache," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(3), September.
    17. Brennan, John P. & Singh, Rajinder Pal & Singh, Inder Pal, 1999. "Economic Issues in Assessing Research Priorities in Feed Grains Nutrition," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123789, Australian Agricultural and Resource Economics Society.
    18. Schulz, Lee L. & Schroeder, Ted C. & White, Katharine L., 2012. "Value of Beef Steak Branding: Hedonic Analysis of Retail Scanner Data," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(2), pages 1-14, August.
    19. Salayo, Nerissa D., 2000. "Investment Opportunities for the Shrimp Processing Industry in the Philippines: Results from a Hedonic Analysis," Discussion Papers DP 2000-12, Philippine Institute for Development Studies.
    20. Mintert, James & Blair, Joanne & Schroeder, Ted & Brazle, Frank, 1990. "Analysis of Factors Affecting Cow Auction Price Differentials," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(2), pages 23-30, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genstf:1998010108000018184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.