Detecting COOL Impacts on US-Canada Bilateral Hog and Pork Trade Flows
Country of Origin Labelling (COOL) regulation has been applied in the United States meat sector since October 2008. The industry must label beef, lamb and pork (ground meat and muscle cuts) sold through retail outlets according to its country of origin. The labelling requirements create differentiation at the retail level and may impose additional costs on producers, processors and retailers in the U.S. and elsewhere. The purpose of this analysis is to investigate whether there has been structural change in U.S. import demand for Canadian hog/pork products. Given that COOL has been in place for a limited period of time, we implement statistical procedures that are robust to structural change occurring at the end of the sample. We find evidence that COOL has impacted U.S./Canada slaughter hog trade flows. While Canadian feeder hog prices appear to have declined concurrently with the introduction of COOL, statistical hypothesis testing found little evidence of structural change for feeder hog trade flows that could be associated with COOL.
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- Zago, Angelo M. & Pick, Daniel H., 2004. "Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
- Gervais, Jean-Philippe & Lambert, Remy, 2010. "The Simple Economics of Hog Marketing Reforms in Quebec," Working Papers 102014, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
- Jones, Keithly G. & Somwaru, Agapi & Whitaker, James B., 2009. "Country of Origin Labeling: Evaluating the Impacts on U.S. and World Markets," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(3), December.
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