IDEAS home Printed from https://ideas.repec.org/p/ags/aaea06/21187.html
   My bibliography  Save this paper

Increasing U.S. Hard Red Winter Wheat Competitiveness in Latin American Markets

Author

Listed:
  • Gallardo, Rosa Karina
  • Holcomb, Rodney B.

Abstract

The United States wheat sector leadership in world markets is facing serious challenges. Canada, Australia, Argentina, the European Union (EU), and the Former Soviet Union (FSU) are growing contenders for international wheat markets. Wheat buyers´ concerns about quality specifications and its consistency have intensified without precedents in the last years. The study focuses on identifying the attributes that wheat buyers most value at the moment of purchase. The study will be done in two stages. The first stage will focus in estimating preferences from actual wheat transactions from different grain-sheds in the HRW growing area. The second stage will focus on the demand from Latin American millers and will estimate their attribute preference and elicit willingness to pay. The second stage will start with Mexican millers, given their importance for the HRW exports. A hedonic price model will be used for the first stage. The second part of the study will attempt to elicit miller´s preferences by using a self explicated approach. Expected results are that the "easy-to-measure attributes": test weight, and protein levels; and all functionality characteristics such as bake absorption, farinograph peak time, farinograph stability, alveograph p/l ratio will be the most valued by the wheat customers. We hypothesize that millers will be willing to pay a premium if those attributes are present in desirable levels. The information should provide insight into the efforts being made by wheat marketing agencies and the U.S. Wheat Associates to promote quality-based marketing of wheat to domestic and foreign millers. Discussion may also include the impacts of quality-based marketing on U.S. share of the world wheat market.

Suggested Citation

  • Gallardo, Rosa Karina & Holcomb, Rodney B., 2006. "Increasing U.S. Hard Red Winter Wheat Competitiveness in Latin American Markets," 2006 Annual meeting, July 23-26, Long Beach, CA 21187, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea06:21187
    DOI: 10.22004/ag.econ.21187
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/21187/files/sp06ga01.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.21187?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Wilson, William W. & Dahl, Bruce L. & Johnson, D. Demcey, 2000. "Procurement Strategies: Impacts Of Quality Risks In Hard Wheat," Agricultural Economics Reports 23214, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Langyintuo, A. S. & Ntoukam, G. & Murdock, L. & Lowenberg-DeBoer, J. & Miller, D. J., 2004. "Consumer preferences for cowpea in Cameroon and Ghana," Agricultural Economics, Blackwell, vol. 30(3), pages 203-213, May.
    3. William W. Wilson & Todd Preszler, 1992. "End-Use Performance Uncertainty and Competition in International Wheat Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 556-563.
    4. Dahl, Bruce L. & Wilson, William W., 1999. "Effect Of Hard Red Spring Wheat Consistency On Milling Value," Agricultural Economics Reports 23378, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Wilson, William W., 1986. "Competition in the International Wheat Market," Agricultural Economics Reports 23326, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. William W. Wilson & Todd Preszler, 1992. "End-Use Performance Uncertainty and Competition in International Wheat Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 556-563.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dahl, Bruce L. & Wilson, William W., 1996. "Grades/Classes Of Hard Wheats Exported From North America: Analysis Of Demand And Trends," Agricultural Economics Reports 23379, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Johnson, D. Demcey & Lin, William W., 2005. "The Economics of Testing for Biotech Grain: Application to StarLink Corn," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(2), pages 1-17, August.
    3. Johnson, D. Demcey, 2005. "Sorting and Blending Under Quality Uncertainty: Application to Wheat Protein," 2005 Annual Meeting, July 6-8, 2005, San Francisco, California 36316, Western Agricultural Economics Association.
    4. Uri, Noel D. & Hyberg, Bengt, 1996. "Differentiation And Implicit Prices Of U.S. Wheat Exports," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(2), pages 1-14, July.
    5. Lavoie, Nathalie, 2001. "Price Discrimination In The Context Of Vertical Differentiation: A Modeling Approach For Wheat Exports," 2001 Annual meeting, August 5-8, Chicago, IL 20603, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Hyberg, Bengt & Uri, Noel D. & Oliveira, Valencia, 1996. "The quality characteristics of Japanese soybean imports," Japan and the World Economy, Elsevier, vol. 8(1), pages 81-98, March.
    7. Lyford, Conrad P. & Yumkella, Kandeh K. & Mercier, Stephanie & Hyberg, Bengt, 1994. "Quality Pricing in U.S. Soybean Exports," Staff Paper Series 201193, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Gallagher, Paul W. & Shapouri, Hosein & Price, Jeffrey & Schamel, Guenter & Brubaker, Heather, 2003. "Some long-run effects of growing markets and renewable fuel standards on additives markets and the US ethanol industry," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 585-608, September.
    9. Gallagher, Paul W. & Shapouri, Hosein & Price, Jeffrey & Schamel, Guenter & Brubaker, Heather, 2003. "Some long-run effects of growing markets and renewable fuel standards on additives markets and the US ethanol industry," ISU General Staff Papers 200309010700001445, Iowa State University, Department of Economics.
    10. Mercier, Stephanie A., 1993. "The Role of Quality in Wheat Import Decisionmaking," Agricultural Economic Reports 308270, United States Department of Agriculture, Economic Research Service.
    11. Sandrine Dury & Véronique meuriot, 2010. "Do urban African dwellers pay a premium for food quality and, if so, how much? An investigation of the Malian fonio grain market," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(4), pages 417-433.
    12. Ricker-Gilbert, Jacob & Moussa, Bokar & Abdoulaye, Tahirou, 2021. "Using Branding to Signal Quality in Informal Markets. Evidence from an Experimental Auction in the Sahel," 2021 Conference, August 17-31, 2021, Virtual 315284, International Association of Agricultural Economists.
    13. Mishili, Fulgence J. & Temu, Anna A. & Fulton, Joan R. & Lowenberg-DeBoer, James, 2009. "Consumer preferences as drivers of the common bean trade in Tanzania: A marketing perspective," Staff Papers 48658, Purdue University, Department of Agricultural Economics.
    14. Fulgence Joseph Mishili & Joan Fulton & Musa Shehu & Saket Kushwaha & Kofi Marfo & Mustafa Jamal & Alpha Kergna & J. Lowenberg-DeBoer, 2009. "Consumer preferences for quality characteristics along the cowpea value chain in Nigeria, Ghana, and Mali," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 16-35.
    15. Diersen, Matthew A. & Wilson, William W. & Johnson, D. Demcey, 1995. "Quality Uncertainty and Grain Merchandising Risk: Vomitoxin in Spring Wheat," Agricultural Economics Reports 23365, North Dakota State University, Department of Agribusiness and Applied Economics.
    16. Kadjo, Didier & Ricker-Gilbert, Jacob & Alexander, Corinne, 2016. "Estimating Price Discounts for Low-Quality Maize in sub-Saharan Africa: Evidence from Benin," World Development, Elsevier, vol. 77(C), pages 115-128.
    17. Kadjo, Didier & Ricker-Gilbert, Jacob & Alexander, Corinne, 2015. "Does quality affect maize prices in sub-Saharan Africa? Evidence from Benin," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205503, Agricultural and Applied Economics Association.
    18. N. Koffi Amegbeto & Victor M. Manyong & Ousmane Coulibaly & Robert Asiedu, 2008. "Estimating market demand for fresh yam characteristics using contingent valuation: implications for crop breeding and production choices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 349-363, November.
    19. Dahl, Bruce L. & Wilson, William W., 1999. "Effect Of Hard Red Spring Wheat Consistency On Milling Value," Agricultural Economics Reports 23378, North Dakota State University, Department of Agribusiness and Applied Economics.
    20. Anneleen Vandeplas & Bart Minten, 2015. "Food quality in domestic markets of developing economies: a comparative study of two countries," Agricultural Economics, International Association of Agricultural Economists, vol. 46(5), pages 617-628, September.

    More about this item

    Keywords

    International Relations/Trade;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea06:21187. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.