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This Little Piggy Went to Market with a Passport: The Impacts of U.S. Country of Origin Labeling on the Canadian Pork Sector

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  • James Rude
  • Javed Iqbal
  • Derek Brewin

Abstract

This paper examines the potential impacts of U.S. mandatory country of origin labeling. North American hog and pork markets are represented as vertically related in a partial equilibrium non‐spatial model. A synthetic model is calibrated to historic data and then used to trace the program's added costs as they are passed through the market to determine who wins and who loses. The transactions costs reduce the welfare of all agents in the United States. Canadian welfare depends primarily on whether mixed supply chains continue to be accepted in the United States and trade in hogs continues. A closed border significantly reduces the welfare of Canadian hog producers and increases the welfare of Canadian pork processors. Le présent article porte sur les répercussions éventuelles de l'étiquetage obligatoire du pays d'origine réclamée par les États‐Unis. Les marchés nord‐américains du porc vivant et de la viande de porc sont représentés comme étant verticalement liés dans un modèle non spatial d'équilibre partiel. Un modèle synthétique est étalonné avec des données historiques et est ensuite utilisé pour déterminer les coûts supplémentaires qu'occasionne le programme à mesure qu'ils sont répartis sur le marché pour déterminer les gagnants et les perdants. Les coûts de transaction diminuent le bien‐être de tous les agents aux États‐Unis. Le bien‐être au Canada dépend principalement de l'acceptation ou non des chaînes d'approvisionnement mixtes et de la continuité ou non du commerce du porc vivant. La fermeture des frontières diminue considérablement le bien‐être des producteurs de porcs canadiens et augmente celui des transformateurs de porcs canadiens.

Suggested Citation

  • James Rude & Javed Iqbal & Derek Brewin, 2006. "This Little Piggy Went to Market with a Passport: The Impacts of U.S. Country of Origin Labeling on the Canadian Pork Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(3), pages 401-420, September.
    • Handle: RePEc:bla:canjag:v:54:y:2006:i:3:p:401-420
    DOI: 10.1111/j.1744-7976.2006.00057.x
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    References listed on IDEAS

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    1. Plain, Ronald L. & Grimes, Glenn, 2003. "Benefits Of Cool To The Cattle Industry," Working Papers 26048, University of Missouri Columbia, Department of Agricultural Economics.
    2. Grier, Kevin & Martin, Larry J. & Mayer, Holly, 2002. "Country Of Origin Labeling: Implications For The Manitoba Hog Industry," Miscellaneous Publications 18099, George Morris Center.
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    Cited by:

    1. Peter Slade & Patrick Lloyd-Smith & Tristan Skolrud, 2020. "The Effect of Carbon Tax on Farm Income: Comment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(2), pages 335-344, October.
    2. Luisa Menapace & Gregory Colson & Carola Grebitus & Maria Facendola, 2011. "Consumers' preferences for geographical origin labels: evidence from the Canadian olive oil market," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(2), pages 193-212, June.
    3. Wang, Xiaojin, 2016. "The Value of Country-of-Origin and Wild-Caught Labels: A Hedonic Analysis of Shrimp Retail Prices in the United States," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230197, Southern Agricultural Economics Association.
    4. Joseph, Siny & Lavoie, Nathalie & Caswell, Julie A., 2014. "Implementing COOL: Comparative welfare effects of different labeling schemes," Food Policy, Elsevier, vol. 44(C), pages 14-25.
    5. Plastina, Alejandro S. & Giannakas, Konstantinos, 2007. "Market And Welfare Effects Of Mandatory Country-Of-Origin Labeling In The Us Specialty Crops Sector," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9735, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Alejandro Plastina & Konstantinos Giannakas & Daniel Pick, 2011. "Market and Welfare Effects of Mandatory Country‐of‐Origin Labeling in the U.S. Specialty Crops Sector: An Application to Fresh Market Apples," Southern Economic Journal, John Wiley & Sons, vol. 77(4), pages 1044-1069, April.
    7. Joseph, Siny & Lavoie, Nathalie & Caswell, Julie A., 2009. "Partial Implementation of COOL: Economic Effects in the U.S. Seafood Industry," Working Paper Series 55921, University of Massachusetts, Amherst, Department of Resource Economics.
    8. Pouliot, Sebastien & Sumner, Daniel A., 2014. "Differential impacts of country of origin labeling: COOL econometric evidence from cattle markets," Food Policy, Elsevier, vol. 49(P1), pages 107-116.
    9. Chern, Wen S. & Lin, Huei-Ching, 2011. "Analysis of Country of Origin Labeling for Food Products in Taiwan Using Auction Experiment with Tasting," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103219, Agricultural and Applied Economics Association.
    10. Tyler J. Klain & Jayson L. Lusk & Glynn T. Tonsor & Ted C. Schroeder, 2014. "An experimental approach to valuing information," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 635-648, September.
    11. repec:kap:iaecre:v:16:y:2010:i:4:p:331-344 is not listed on IDEAS
    12. Janelle Mann & Derek Brewin, 2021. "Investigating the Impact of Trade Disruptions on Price Transmission in Commodity Markets: An Application of Threshold Cointegration," JRFM, MDPI, vol. 14(9), pages 1-7, September.
    13. Taylor, Mykel R. & Tonsor, Glynn T., 2013. "Revealed Demand for Country-of-Origin Labeling of Meat in the United States," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-13, August.
    14. Pascal Ghazalian & Ryan Cardwell, 2010. "Did the Uruguay Round Agreement on Agriculture Affect Trade Flows? An Empirical Investigation for Meat Commodities," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(4), pages 331-344, November.
    15. Wen Chern & Huei-Ching Lin, 2012. "Taiwanese Consumer Valuation of Country of Origin Labeling Using Auction Experiment with Tasting," Journal of Family and Economic Issues, Springer, vol. 33(2), pages 184-198, June.
    16. Ross Hallren & Alexandra Opanasets, 2018. "Whence the Beef: The Effect of Repealing Mandatory Country of Origin Labeling (COOL) Using a Vertically Integrated Armington Model with Monte Carlo Simulation," Southern Economic Journal, John Wiley & Sons, vol. 84(3), pages 879-897, January.
    17. Joseph, Siny & Lavoie, Nathalie, 2008. "Effectiveness of COOL in the U.S. Seafood Industry," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6260, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Edgar E. Twine & James Rude & Jim Unterschultz, 2016. "Country of Origin Labeling and Structural Change in U.S. Imports of Canadian Cattle and Beef," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 545-563, September.

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