Canada‐United States Chicken Trade: A Re‐Evaluation

Huff, Karen; Meilek, Karl D.; Amedei, Roberto

doi:10.1111/j.1744-7976.2000.tb00397.x

Cited by 14 publications

(8 citation statements)

References 5 publications

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“…The aggregate burden on consumers is smaller in this simulation; this is attributed to higher post-liberalization chicken prices in Huff et al (2000). The pattern of regressivity is similar to the cross-border price comparison in this alternate scenario, however, with the lowest-income households bearing a relative burden (CV divided by income) that is more than five times larger than that of the highest-income households.…”

Section: Resultssupporting

confidence: 58%

Milked and Feathered: The Regressive Welfare Effects of Canada's Supply Management Regime

Cardwell

Lawley

Xiang

2015

Canadian Public Policy

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Au Canada, la production et le commerce de produits laitiers et de volaille sont soumis à un système de gestion de l'offre (GO) : des quotas sont imposés aux producteurs, et des contingents tarifaires limitent les importations. Plusieurs partenaires commerciaux du Canada cherchent à obtenir un meilleur accès au marché canadien de produits laitiers et de volaille dans le cadre de négociations d'accords commerciaux préférentiels, et cela a ravivé le débat sur la GO. Dans cet article, nous analysons une critique de ce système de GO, selon laquelle le régime a des effets dégressifs sur la répartition des revenus. Pour évaluer la réaction des consommateurs à des changements de prix des produits laitiers et de volaille, nous utilisons le modèle d'approximation de la demande EASI, que nous appliquons à des données tirées de l'Enquête sur les dépenses alimentaires. Les paramètres du modèle nous permettent de comparer la situation actuelle (avec GO) et ce qui se produirait sur un marché libéralisé. Nos résultats montrent que le régime actuel est très dégressif, puisqu'il impose une charge annuelle d'environ 2,3 pour cent (339 $) aux ménages les plus pauvres, alors que cette charge n'est que de 0,5 pour cent (554 $) pour les ménages les plus riches. De plus, cette charge est plus importante encore dans le cas des ménages avec enfants.Mots clés : gestion de l'offre, estimation de la demande, impô t dégressifThe production and trade of dairy and poultry products in Canada are controlled by a system of supply management (SM). Output is regulated with production quotas, and imports are restricted through a system of tariff-rate quotas. Many of Canada's trading partners are seeking better access to Canadian dairy and poultry markets in negotiations over proposed preferential trade agreements. These pressures have renewed debate about the future of SM in Canada. We investigate one criticism of SM: that high prices for dairy and poultry products impose regressive distributional effects on Canadian consumers. We apply the Exact Affine Stone Index demand model to data from the Canadian Food Expenditure Survey to estimate consumer responses to price changes for dairy and poultry products. Parameters from the demand model are used to generate welfare comparisons between the current SM regime and a counterfactual liberalized market. Canada's SM policies are highly regressive, imposing a burden of approximately 2.3 percent ($339) of income per year on the poorest households, compared to 0.5 percent ($554) for the richest households. The burden is larger for households with children.

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Section: Resultssupporting

confidence: 58%

Milked and Feathered: The Regressive Welfare Effects of Canada's Supply Management Regime

Cardwell

Lawley

Xiang

2015

Canadian Public Policy

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“…13 Wholesale chicken prices are 12-city composite wholesale price, ready-to-cook prices obtained from ERS (2004). 14 Transportation cost estimates were obtained from Huff et al (2000). 15 Simulations involved a 1,000 draws of the random world price.…”

Section: Discussionmentioning

confidence: 99%

Tariff‐Rate Quota Liberalization: The Case of World Price Uncertainty and Supply Management

Rude¹,

Gervais

2006

Canadian J Agri Economics

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"This paper examines the options for liberalizing tariff-rate quotas when a marketing board controls domestic production and international prices are stochastic. Lowering over-quota tariff and increasing import quota volumes are not equivalent. The trade-offs between the two types of trade reforms are examined through numerical simulations for the Canadian chicken industry. Introducing world price variability results in a distribution of welfare impacts for the different groups in the industry. Consumers and processors gain more with tariff liberalization than with increased import quotas. The difference in producer surplus between liberalization regimes is truncated so that producers only see down-side risk under the tariff liberalization regime." Copyright 2006 Canadian Agricultural Economics Society.

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“…Chicken has traditionally been treated as a single homogeneous product in trade policy analyses, regardless of production location or cut (Peterson and Orden ; Rude and Gervais ). However, Huff et al () found that the pattern of Canadian chicken consumption and trade suggests that chicken meat is two differentiated products and proposed differentiation by cut as an area for further research. A competitive partial equilibrium model with disaggregated high value (white meat) and low value (dark meat) cuts, and a country‐of‐origin differentiation has been studied in the context of sanitary measures (Peterson and Orden ).…”

Section: Canadian Chicken Industry and Tradementioning

confidence: 99%

The Effects of a New WTO Agreement on Canada's Chicken Market: A Differentiated Products Modeling Approach

Rafajlovic

Cardwell

2013

Canadian J Agri Economics

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Current World Trade Organization (WTO) negotiations include proposals that would affect the trade barriers protecting Canada's chicken producers from foreign competition. This research analyzes the effects of the most recent proposals to emerge from WTO negotiations on Canada's chicken industry.We develop a partial-equilibrium model that generates welfare effects for the Canadian chicken industry supply chain. The baseline model is adapted to represent chicken as two distinct products: white meat and dark meat. Simulation results suggest that the welfare effects of current WTO proposals would be small, providing that chicken receives the sensitive products designation. Liberalization leads to higher total welfare in the chicken industry, which is accounted for by consumer welfare that increases by a larger amount than producer welfare decreases. The results are very sensitive to the disaggregation of chicken as two products; a finding that should inform future research.Les négociations de l'OMC présentement en cours comprennent des propositions qui pourraient avoir une incidence sur les barrières commercialesérigées en vue de protéger les producteurs de poulet du Canada contre la concurrenceétrangère. Dans la présenteétude, nous avons analysé les répercussions des dernières propositions de l'OMC sur l'industrie canadienne du poulet. Nous avons mis au point un modèle d'équilibre partiel qui permet de déterminer les effets sur le bien-être de la chaîne d'approvisionnement de l'industrie canadienne du poulet. Le modèle de base aété adapté de façonà subdiviser le poulet en deux produits distincts : la viande blanche et la viande brune. Les résultats de simulation autorisentà penser que les propositions actuelles de l'OMC auraient de faibles effets sur le bien-être,à condition que le poulet soit désigné « produit sensible ». La libéralisation deséchanges entraîne une hausse du bien-être total de l'industrie du poulet, puisque le bien-être du consommateur augmente de façon plus marquée que celui du producteur ne diminue. Les résultats sont très sensiblesà la subdivision du poulet en deux produits distincts, un constat qui pourrait inspirer des travaux de recherche futurs.

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Canada‐United States Chicken Trade: A Re‐Evaluation

Cited by 14 publications

References 5 publications

Milked and Feathered: The Regressive Welfare Effects of Canada's Supply Management Regime

Milked and Feathered: The Regressive Welfare Effects of Canada's Supply Management Regime

Tariff‐Rate Quota Liberalization: The Case of World Price Uncertainty and Supply Management

The Effects of a New WTO Agreement on Canada's Chicken Market: A Differentiated Products Modeling Approach

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