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Will Country-Of-Origin Labeling (Cool) Be 'Cool' For The U.S. Meat Industry?

Author

Listed:
  • Chung, Chanjin
  • Zhang, Tong
  • Peel, Derrell S.

Abstract

The study develops a Muth-type equilibrium displacement model that is able to estimate impacts of COOL on multistage beef production system and its trade relations. The model includes equilibrium conditions of each production stage with consideration of trade and market structure. A unique feature of this model is that it allows for retailer's oligopsony power separately from processor's market power. Simulation results indicate that the cost of COOL would outweigh the overall industry benefit unless COOL leads to low cost increases and more than a 10% increase in consumers' willingness to pay. The COOL provision is expected to have relatively smaller negative impact on cow-calf producers, backgrounders, and feedlots than on packers and retailers.

Suggested Citation

  • Chung, Chanjin & Zhang, Tong & Peel, Derrell S., 2004. "Will Country-Of-Origin Labeling (Cool) Be 'Cool' For The U.S. Meat Industry?," 2004 Annual meeting, August 1-4, Denver, CO 19934, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:19934
    DOI: 10.22004/ag.econ.19934
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    References listed on IDEAS

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    1. Schupp, Alvin R. & Gillespie, Jeffrey M., 2001. "Consumer Attitudes Toward Potential Country-Of-Origin Labeling Of Fresh Or Frozen Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(3), pages 1-11, November.
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    Cited by:

    1. Sven Anders & Stanley Thompson & Roland Herrmann, 2009. "Markets segmented by regional-origin labelling with quality control," Applied Economics, Taylor & Francis Journals, vol. 41(3), pages 311-321.
    2. Thompson, Stanley R. & Anders, Sven M. & Herrmann, Roland, 2005. "Regional-Origin Labeling with Quality Control: An Economic Analysis," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24656, European Association of Agricultural Economists.

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