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Changes in foot and mouth disease status and evolving world beef markets

Author

Listed:
  • Javier Ekboir

    (Economics Program, Centro Internacional de Mejoramiento de Maíz y Trigo (CIMMYT))

  • Lovell S. Jarvis

    (Department of Agricultural and Resource Economics, Giannini Foundation, University of California, Davis)

  • Daniel A. Sumner

    (Department of Agricultural and Resource Economics, Giannini Foundation, University of California, Davis)

  • José E. Bervejillo

    (Department of Agricultural and Resource Economics, Giannini Foundation, University of California, Davis)

  • William R. Sutton

    (The World Bank)

Abstract

Argentina and Uruguay eradicated foot and mouth disease (FMD) in 2000 and 1995, and subsequently gained greater access to FMD-free markets. Although both South American countries suffered from the reintroduction of FMD in late 2000, and had to temporarily cease exports to FMD-free markets, they are expected to eradicate FMD again and will continue to increase exports to FMD-free markets. This article analyzes the changes in international beef trade and, especially, in beef prices that are expected. We use a simulation model that captures the effects of market segmentation due to the FMD status and of the trade policies of exporting and importing countries. The ongoing realignment of trade flows has potential to significantly affect prices in both the FMD-free and the FMD-endemic segments of the world beef market. We demonstrate how growing beef exports from South America to FMD-free markets interact with other on-going changes in international beef markets. © 2002 Wiley Periodicals, Inc. [EconLit citations: Q110: Agriculture, Aggregate Supply and Demand; Q170: Agriculture, International Trade]

Suggested Citation

  • Javier Ekboir & Lovell S. Jarvis & Daniel A. Sumner & José E. Bervejillo & William R. Sutton, 2002. "Changes in foot and mouth disease status and evolving world beef markets," Agribusiness, John Wiley & Sons, Ltd., vol. 18(2), pages 213-229.
  • Handle: RePEc:wly:agribz:v:18:y:2002:i:2:p:213-229
    DOI: 10.1002/agr.10014
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    Citations

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    Cited by:

    1. Alves, Alexandre Florindo & Guilhoto, Joaquim José Martins, 2014. "The impact of cattle foot and mouth disease in the Brazilian economy," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182824, European Association of Agricultural Economists.
    2. João Delgado & Simon Pollard & Kerry Pearn & Emma L. Snary & Edgar Black & George Prpich & Phil Longhurst, 2017. "U.K. Foot and Mouth Disease: A Systemic Risk Assessment of Existing Controls," Risk Analysis, John Wiley & Sons, vol. 37(9), pages 1768-1782, September.
    3. Thor, Eric, III & Bailey, DeeVon & Silvac, Alejandro R. & Vickner, Steven S., 2007. "Economic Analysis of Incentives for Foreign Direct Investment in Beef Systems in Argentina and Uruguay," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(3), pages 1-22.
    4. Liu, Yanxu & Sims, Charles, 2016. "Spatial-dynamic externalities and coordination in invasive species control," Resource and Energy Economics, Elsevier, vol. 44(C), pages 23-38.
    5. Jarvis, Lovell S. & Cancino, Jose P. & Bervejillo, Jose E., 2005. "The Effect of Foot and Mouth Disease on Trade and Prices in International Beef Markets," 2005 Annual meeting, July 24-27, Providence, RI 19424, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Rich, Karl M. & Winter-Nelson, Alex, 2004. "A Spatial Model Of Animal Disease Control In Livestock: Empirical Analysis Of Foot And Mouth Disease In The Southern Cone," 2004 Annual meeting, August 1-4, Denver, CO 20015, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Rich, Karl M. & Winter-Nelson, Alex & Brozovic, Nicholas, 2005. "Regionalization and foot-and-mouth disease control in South America: Lessons from spatial models of coordination and interactions," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 526-540, May.

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