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Wholesale pork demand: Understanding primal-level heterogeneity

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  • Luke, Jaime R.
  • Tonsor, Glynn T.
  • Brown, D. Scott

Abstract

Traditionally, meat demand studies have estimated the demand for pork at the aggregate commodity level, but this study proposes wholesale pork demand estimation at the pork primal level. Flexibilities for the primal cuts as well as beef and chicken are estimated using an inverse almost ideal demand system (IAIDS). Own-quantity flexibilities for pork primal cuts are largely inflexible and statistically different from one another, suggesting heterogeneity exists in demand for pork at the primal level. Among the pork primal cuts, we find changes in quantity demanded result in the greatest percentage change in the price of loins and the smallest percentage change in the price of bellies. Ultimately, this study provides necessary information for the U.S. pork industry as recent policies, such as California's Proposition 12, are spurring changes in the pork production landscape. Estimated elasticities can be used in pork demand-building efforts both today and into the future.

Suggested Citation

  • Luke, Jaime R. & Tonsor, Glynn T. & Brown, D. Scott, 2024. "Wholesale pork demand: Understanding primal-level heterogeneity," Journal of Commodity Markets, Elsevier, vol. 34(C).
    • Handle: RePEc:eee:jocoma:v:34:y:2024:i:c:s2405851324000217
    DOI: 10.1016/j.jcomm.2024.100402
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    More about this item

    Keywords

    Wholesale meat demand; Inverse almost ideal demand system (IAIDS); Pork primal cuts; Beef; Chicken; California Proposition 12;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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