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Impact of Exports on the U. S. Beef Industry


  • Eenoo, Ed Van
  • Peterson, Everett
  • Purcell, Wayne


Policy and programmatic decisions dealing with beef exports require good information as to the impact of exports on the domestic beef industry. This paper utilizes a partial equilibrium model of the world beef market to assess the impacts on the U.S. beef sector of increases in real income in major beef importing countries, the impacts of changes in the prices of pork and poultry products, and the impacts of changes in the price of feedgrains. A one percent increase in real GDP in Canada, Japan, Mexico, and South Korea yielded a 1.6 percent increase in U.S. exports of high-quality beef. This increase in exports leads to approximately a 29.2 million pound increase U.S. beef production on a retail weight basis. The increase in export demand also yields an increase in beef prices of approximately $0.275 per cwt. on a $120 box of beef and $0.18 per cwt on a $70 fed steer. One percent increases in the prices of pork and poultry products yield a smaller 0.8 percent increase in U.S. beef exports, but also lead to a 1.5 percent increase in U.S. imports of low-quality beef. This is due to U.S. consumers viewing low-quality beef as a substitute for pork and poultry. Finally, a one percent increase in the price of feedgrains reduces U.S. beef exports by 0.4 percent. This is due to a reduction in U.S. beef production from the increased feeding costs.
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Suggested Citation

  • Eenoo, Ed Van & Peterson, Everett & Purcell, Wayne, 2000. "Impact of Exports on the U. S. Beef Industry," Staff Papers 232380, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
  • Handle: RePEc:ags:vtaesp:232380
    DOI: 10.22004/ag.econ.232380

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    Cited by:

    1. Sophie DROGUE & Stephan MARETTE & Priscila RAMOS, "undated". "Product Differentiation and Trade: An Example From the Bovine Meat Sector," EcoMod2004 330600043, EcoMod.
    2. Zheng, Zijuan & Saghaian, Sayed H. & Reed, Michael R., 2012. "Factors Affecting the Export Demand for U.S. Pistachios," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(3), pages 1-16, September.
    3. Maria Priscila Ramos & Sophie Drogué & Stephan Marette, 2006. "Welfare Measurement Biases and Product Differentiation in Agriculture: An Example from the US Beef Sector," Working Papers 2006/02, INRA, Economie Publique.
    4. Jared G. Carlberg & Robert J. Hogan & Clement E. Ward, 2009. "Game theory application to Fed Cattle procurement in an experimental market," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 56-69.


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