Purpose The purpose of this paper is to present an economic evaluation of Uruguay’s beef industry competitiveness to quantify the effects of public policies (taxes, subsidies, social charges) on the various links constituting the beef export chain and estimate the impact of transfers of resources between the beef industry and other sectors of the economy. Design/methodology/approach The Policy Analysis Matrix (PAM) techniques were employed to quantify the effects of public policies on the competitiveness of Uruguay’s beef industry. A series of PAM coefficients were calculated to assess the competitiveness of the beef export chain in 2010 and 2013 with comparison between the two years to make policy recommendations. Findings Beef sector returns captured by private agents decreased from 30 percent in 2010 to 10 percent in 2013. Competitiveness of the beef export chain deteriorated between 2010 and 2013 due primarily to higher prices paid for live cattle by the beef slaughtering, manufacturing, and packing sector. Uruguay’s beef industry transfers resources to the larger economy via social security payments and is penalized as a result of high capital costs. Research limitations/implications Although three different sources of resource transfers were identified, more effort is needed to improve the precision of estimations. Originality/value The competitiveness of export chains is critical to the economic and social wellbeing of small-economy countries. They must be efficient producing for the international markets at the time they constitute pillars of the whole economy.

This article analyzed the demand for meats at household level over the past decade in Uruguay, a country that exhibits a very high per capita consumption of these products. In particular, the consumption of beef is one of the highest in the world and only comparable to Argentina. The analysis involved a two-step estimation of an incomplete system of censored demand equations using household data from the last available national income and expenditure survey (2005/06). Thirteen meat products were included in the analysis: six broad beef products (deboned hindquarter cuts, bone-in hindquarter cuts, ground beef, rib plate, bone-in forequarter cuts, and other beef cuts), four products from other meats (sheep, pork, poultry, and fish), and three generic mixed-meat products. A complete set of short-term income, own-price and cross-price elasticities were computed and reported along with their 90% confidence intervals (CI). The results were consistent with both economic theory and empirical evidence as well as with the expected behavior, considering the relevance of these products, particularly beef, in the diet of Uruguayan consumers. All meat items were necessary goods and evidenced income-inelastic responses, which was expected given their high consumption level. All meats behaved as normal goods although exhibiting different reactions to changes in price. In general, beef cuts were more price elastic than other more broadly defined products. The more specific and disaggregated the meat product the higher its corresponding direct price elasticity. The complement/substitute relationships found in this study were highly depended on the specific product combinations.

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