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Effects of Country-of-Origin Labeling on Meat Producers and Consumers

  • Lusk, Jayson L.
  • Anderson, John D.

Although several studies have estimated the costs of country-of-origin labeling (COOL), no previous study has documented how these costs will be distributed across the livestock sector or how producer and consumer welfare will be affected. This analysis presents an equilibrium displacement model of the farm, wholesale, and retail markets for beef, pork, and poultry that documents how producers and consumers will be affected by COOL. Findings reveal that as the costs of COOL are shifted from the producer to the processor and retailer, producers are made increasingly better off while consumers are made increasingly worse off. Further, an increase in aggregate consumer demand of 2% to 3% is likely sufficient to offset lost producer welfare due to COOL costs.

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File URL: http://purl.umn.edu/31110
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Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 29 (2004)
Issue (Month): 02 (August)
Pages:

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Handle: RePEc:ags:jlaare:31110
Contact details of provider: Web page: http://waeaonline.org/
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  1. Cranfield, John A.L., 2002. "Optimal Advertising With Traded Raw And Final Goods: The Case Of Variable Proportions Technology," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(01), July.
  2. Umberger, Wendy J. & Feuz, Dillon M. & Calkins, Chris R. & Sitz, Bethany M., 2003. "Country-Of-Origin Labeling Of Beef Products: U.S. Consumers' Perceptions," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(03), November.
  3. Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
  4. Hahn, William F. & Green, Richard D., 2000. "Joint Costs In Meat Retailing," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(01), July.
  5. Plain, Ronald L. & Grimes, Glenn, 2003. "Benefits Of Cool To The Cattle Industry," Working Papers 26048, University of Missouri Columbia, Department of Agricultural Economics.
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