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Import Demand for Dairy Products in Chile and Competition among Exporting Countries: The Case of Milk Powder and Cheese

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  • Rodrigo Garc?a Arancibia

Abstract

The study of the Chilean market for milk imports is relevant due to its impact on the determination of prices in the domestic dairy chain and for being a relevant market for some exporting countries, such as Argentina. In recent years, together with an increase in Chilean dairy imports, there has been a change in its composition, with the incorporation of the United States and New Zealand as relevant exporters. This paper estimates a Chilean import demand system for dairy products taking into account the main source countries for the period 2002- 2014. Specifically, a linear approximation of Source Differentiated Almost Ideal Demand System (saids) is estimated for milk powder and cheese imported by Chile, considering the competition between the different exporters that participate in the Chilean market. Expenditure, own-price and cross-price elasticities are estimated, and an elasticity-based index is proposed to compare the competitive position of the exporting countries.

Suggested Citation

  • Rodrigo Garc?a Arancibia, 2019. "Import Demand for Dairy Products in Chile and Competition among Exporting Countries: The Case of Milk Powder and Cheese," Economia agro-alimentare, FrancoAngeli Editore, vol. 21(1), pages 101-128.
    • Handle: RePEc:fan:ecaqec:v:html10.3280/ecag2019-001006
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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

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