Welfare Impacts of BSE-Driven Trade Bans

Mutondo, Joao; Brorsen, B. Wade; Henneberry, Shida Rastegari

doi:10.1017/s1068280500009576

Cited by 6 publications

(3 citation statements)

References 16 publications

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“…Considering that the impact of prices and income on consumption can be measured by the elasticities of demand, studies of demand systems for imported products have been carried out in Mozambique and in several parts of the world. For example, for meat: (i) the study about the imported broilers in Mozambique [25]; (ii) the investigation of the competitiveness of meat from different origins in Japan [40]; (iii) the estimation of demand systems for imported meat in Japan [55]. To mention few.…”

Section: Problem Statement and Justificationmentioning

confidence: 99%

Demand of Imported Rice in Mozambique (2011 - 2020)

Macia,

Macuacua,

Vilanculos

et al. 2024

AJAF

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Rice plays an important role in the food and nutrition security of the Mozambican population and has been importing rice to meet growing consumption needs. There are several studies regarding demand of imported rice worldwide. However, it is noted that despite the importance of imported rice in national consumption, the empirical and quantitative studies on the demand for imported rice in Mozambique are scarce. This study results from the need to contribute to filling the information gap by providing the quantification of the impact of income and price on the consumption of imported rice. Based on monthly rice import data from 2011 to 2020, obtained from INE, the Source Differentiated Almost Ideal Demand System (SDAIDS) model and the Seemingly Unrelated Rules (SUR) approach are applied to estimate demand systems for imported rice. The period was chosen due to availability of data. The results of this study show that the national production of rice still does not cover internal needs, so the country resorts to imports to fill the deficit. The elasticities of demand for rice imported into Mozambique show that all income elasticities of demand are statistically significant, except for “other countries” or Rest of the World. The results also show that when income increases by 1%, the demand for rice increases by 1.2% when coming from “Pakistan”, and by 1.1% when coming from “Singapore”, by 1.03% for “Vietnam”; and in for those from “Myanmar” (1.1%), which suggests that rice from these countries can be classified in the luxury goods category. The results also illustrate that when the price increases by 1%, the quantities demanded decrease, on average, by 1.06% for rice coming from “Pakistan”; by 1.06% for those from “Singapore”; 1.22% for those from “Myanmar”; 0.96% for those from “Vietnam”; by 0.89% for “India”; by 0.79% for “China”; in 0.974% for “Thailand” and in 0.56% for those coming from “other countries”. The low levels of production and productivity show that it is still a challenge to guarantee rice self-sufficiency in Mozambique, and efforts to improve supply must continue, since the country's dependence on imported rice can potentially create conditions of vulnerability and insecurity and adverse market effects have competitive advantages.

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Section: Problem Statement and Justificationmentioning

confidence: 99%

Demand of Imported Rice in Mozambique (2011 - 2020)

Macia,

Macuacua,

Vilanculos

et al. 2024

AJAF

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“…However, the examples of similar academic research could be found for the other countries. As a rule, such food safety or disease-driven research cases often focus on changes of the structure of the domestic consumption or export/import (Felt, 2011;Mattson, 2005;Mutondo, 2009;Niemi, 2008;Taha, 2013) and welfare changes in a vertical supply chain of the selected agri-food commodities (Brorsen, 2002;Hassouneh, 2009;Niemi, 2006). This paper will contribute to the scarce academic research on the aftermaths of the disease-driven trade bans of Russia and will provide the case of the Lithuanian pork market.…”

Section: The Research On Trade Bans Imposed By Russia In the Agricultmentioning

confidence: 99%

Impact of the Russian Trade Bans on Lithuanian Pork Sector

Jurkėnaitė

Djuric

2018

Management Theory and Studies for Rural Business and Infrastructure Development

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Over the last decade, Lithuanian pork sector faced dramatic changes, where trade relations with Russia had an important role. The research problem is defined as follows: how does the trade ban of Russia, imposed towards live pigs and pork originating from Lithuania, affect price changes on domestic Lithuanian pork market? The research aims at estimating the effects of the trade ban caused by the outbreak of the swine fever in Lithuania and providing proposals on situation development. The aim is achieved by analysing the transmission of price changes between Lithuanian and Russian pork markets by using the ARDL model. The results indicate a significant decrease in transmission of price changes, both in short- and long-run, from Lithuanian pig prices towards Russian domestic prices during the ‘2011 ban’ regime and further worsening of the situation during ‘2014 ban’ period that was mainly caused by the isolation of the Russian market and lack of export diversification strategy from the Lithuanian side. In Lithuania, high price volatility was not typical during the bans, while negative effects on welfare of farmers were evidenced by reduced trade volumes, which could be improved by biosafety and disease spread reducing measures, reassessing trade regulations and partners’ network.

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“…Morgan (2001) simulates the impacts assuming different scenarios of the effects of earlier BSE outbreaks in Europe on the international beef market showing that beef exports would return to the baseline level by 2006. Mutondo, Brorsen, and Henneberry (2009) and Panagiotou and Azzam (2010) study the welfare loss of U.S. beef producers due to trade bans after the 2003 BSE outbreaks in the United States and estimate a loss ranging from $500 to more than $700 million annually. Wigle, Weerahewa, Bredahl, and Samarajeewa (2007) study the effects of trade restrictions due to BSE outbreaks in Canada and find that the general equilibrium effect produces gains for consumers that partially offset producers’ losses.…”

Section: Introductionmentioning

confidence: 99%

Long‐run impacts of trade shocks and export competitiveness: Evidence from the U.S. BSE event

Chen

Crespi

Hahn

et al. 2020

Agricultural Economics

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This paper examines how comparative advantages of major beef exporters changed following the 2003 bovine spongiform encephalopathy (BSE) outbreak, which significantly disrupted the U.S. beef trade until approximately 2007. Using longitudinal data on beef export values and constructed revealed comparative advantage measures, we show that while some measures of the long-run impacts of BSE on U.S. beef export competitiveness have returned to pre-2003 levels, the U.S.'s comparative advantage has not. We also examine a hypothetical scenario of no BSE event in 2003 and predict that in the absence of the BSE outbreak, the U.S. beef sector would have been increasingly more competitive by 2017 than it actually was. Long-term trade competitiveness may not simply return to normal even after a short-term disruption.

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Welfare Impacts of BSE-Driven Trade Bans

Cited by 6 publications

References 16 publications

Demand of Imported Rice in Mozambique (2011 - 2020)

Demand of Imported Rice in Mozambique (2011 - 2020)

Impact of the Russian Trade Bans on Lithuanian Pork Sector

Long‐run impacts of trade shocks and export competitiveness: Evidence from the U.S. BSE event

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