Ultrasound technology for better beef price

Sluggish growth in per capita consumption and a downward pressure on beef price at the farm level has required producers to raise cattle that precisely target the meat attributes desired by consumers. Coupled with the consumers' preference for beef with lean tissue and less external fat, the beef packing plants have used the dualistic grading system that emphasizes leanness and palatability; both important to carcass prices. Ultrasound technology can help farmers to produce a carcass with an optimal mix of attributes such as marbling and muscling, and external fat. The results of this study show a high level of accuracy of ultrasound technology in predicting carcass attributes. An estimated hedonic regression model shows that the carcass attributes are reflected on the implicit beef price. Ultrasound technology helps producers to produce carcass with the desired attributes and thus obtain a higher price.     

Franchising as an Entry Strategy in Mexico:

Many international investors were unprepared for recent economic events in Mexico. Others view this equilibrating process as an opportunity to newly invest in the Mexican economy. This study focuses on franchising as an international market entry strategy with specific attention to implications for international financial management issues. The case study of Mrs. Field's, a recent entrant into international franchising, illustrates how the unexpected devaluation of the peso was addressed, and moreover, used as an opportunity to restructure foreign operations and prepare for future international expansion. The unique characteristics of Mrs. Field's and their Mexican investors, which have allowed them to take advantage of the current Mexican market conditions, are the secondary focus of this study.     

Supply chain performance flexibility in the Australian beef industry

The red meat value chain in Australia is undergoing a rapid change due to globalisation, a highly competitive meat market and increased production efficiency and flexibility. This paper aims to investigate how beef producers can increase supply chain performance (SCP) flexibility by improving supply chain practices. A model was developed and hypotheses were formulated based on the literature review of agri-food supply chains. A survey questionnaire was distributed to beef producers in Australia and the results of stepwise multiple regression analysis revealed that performance flexibility was significantly influenced by the supply chain practices: customer relationships and information quality (IQ). Given these findings, beef producers should focus on customer relationships and IQ in order to achieve enhanced flexibility in their SCP. The paper discusses the implications and current practices in beef cattle farming industry.     

The consequences of a human food pathogen vaccine on food demand: a calibrated partial‐equilibrium analysis of the U.S. beef market

Human vaccines against several common foodborne pathogens are being developed and could substantially alter consumer and producer behaviour in the markets for foods commonly afflicted by these pathogens. To understand the possible impacts of such an innovation, we derive and calibrate a partial‐equilibrium model using parameters for consumer vaccine uptake from stated‐preference work under an array of assumptions concerning industry moral hazard, consumer awareness and alternative preventive effort exercised by consumers. We simulate three scenarios in the U.S. beef sector: the introduction of a vaccine, the tightening of pathogen standards for beef production and the simultaneous introduction of both vaccinations and tighter standards. Our simulation shows that all policies can increase aggregate surplus given most calibrations; though, the largest effects are attributed to vaccine introductions, which reduce expected damages from foodborne illness among vaccinated consumers without shifting firm costs. However, unaware consumers and aware consumers who choose not to vaccinate experience no change in expected damages when a vaccine is introduced but face a higher price of food because of the stronger demand of food from vaccinated consumers.     

收入分布、户籍地差异与城镇居民牛肉消费基于广义双栏模型的实证研究

[目的]我国社会经济发展已进入追求高质量增长模式的新时代,以牛肉为代表的优质畜产品逐渐成为城镇居民餐桌上的新宠,文章重点研究了中国城镇居民牛肉消费的收入阶层异质性和户籍地差异特征,并模拟分析了收入分布变化对不同户籍类型家庭牛肉消费的影响。[方法]运用广义双栏模型,基于国家统计局的6省区城镇住户微观调查数据,识别了牛肉消费的影响因素并估计了不同收入阶层的牛肉需求的收入弹性,最后基于收入弹性和收入增长率模拟分析收入分布变化的影响效果。[结果]随着我国城镇居民生活水平的提升和畜产品消费结构的升级,未来牛肉需求将会不断扩大;户籍地差异会对居民牛肉消费产生显著影响,户籍制度限制了居民的牛肉消费需求,但收入的增长可弥补部分户籍制度带来的福利差异;缩小收入差距,提升中等收入群体家庭收入的增长模式能够显著增加居民牛肉需求,尤其是提升农民工群体的收入。[结论]未来需要继续通过供给侧改革来应对牛肉需求的激增,扩大中等收入群体并重视农民工群体的发展是全面建成小康社会的关键环节。     

我国肉牛规模化养殖变动趋势及影响因素研究——基基于面板分位数回归的实证分析

目的 探究我国肉牛规模化养殖变动趋势及影响因素,为推动肉牛规模化养殖、提高牛肉生产能力以确保基本供给提供政策依据。方法 文章基于2007—2020年我国16个肉牛主产省面板数据,首先分析肉牛规模化养殖变动趋势及省际差异,然后采用面板分位数回归模型实证检验肉牛规模化养殖影响因素。结果 （1）我国肉牛规模化养殖水平东北地区相对较高,西南地区最低。（2）省域内饲草料生产能力、固定资产能力、机械化水平、城镇化率和工资性收入水平越高、牛肉消费潜力、政策扶持力度和环境规制强度越大,肉牛养殖规模化水平越高。（3）提高牧草生产能力对促进广西、贵州、云南和四川等西南地区的肉牛规模化养殖更为明显,提高饲料生产能力和牛肉市场消费潜力对促进辽宁、吉林和黑龙江等北方地区的肉牛规模化养殖更为明显。（4）小、中规模肉牛养殖受资源禀赋影响更大,中、大规模肉牛养殖受固定资产投入水平和政策扶持影响更大。结论 发展肉牛规模化养殖需充分考虑区域和规模的差异性,从稳固饲草基础保障、完善肉牛扶持政策和环境规制政策、加强人才队伍建设、提高养殖技术水平、优化养殖规模布局等方面着手,推动肉牛规模化养殖快速发展。     

Rod F. Ziemer**

This paper investigates the effect of disequilibrium prices on consumer and producer surplus in the U.S. fed beef market. An econometric model which allows for the possibility of prices that do not clear the market was used in the analysis. Results indicated that (I) the effect of disequilibrium prices in the U.S. fed beef market in the 1960s was relatively small compared to the 1970s and (2) recent price controls on beef caused price distortions that yielded surplus gains to consumers while producers suffered surplus losses. Cet article a pour but de déterminer ?effet du déséquilibre des prix sur le surplus du consommateur et du producteur dans le marché des bovins ?alimentation, aux Etats- Unis. Dans cette analyse, nous avons utilisé un modele économétrique qui peut s'appliquer aux cas où les prix ne sonl pas à la situation ?équilibre. Les résullats indiquent que: (1) ?effet do déséquilibre des prix dans les années 60 aux Etats- Unit était relativement modeste compareéà?effet enregistré dans les années 70; (2) les récents contrölles de prix imposés sur les bovins ont causé des distortions de prix. lesquelles distortions ont entrainé un accroissement du surplus du consommateur au détriment du surplus du producteur.     

Assessment of the Economic Benefits From U.S. Meat Export Federation (USMEF)’s Marketing Investment in South Korea

In 2007, the United States and South Korea agreed for partial access of U.S. beef to South Korea under the Korea–U.S. (KORUS) FTA concession, and started to import sizable U.S. beef to South Korea in 2008 despite some negative sentiments of Korean consumers for U.S. beef due to the safety concerns. From 2011 to 2015, the USMEF is scheduled to invest approximately US$10 million on promotion of U.S. beef in South Korea. Thus, it is important to access effectiveness of USMEF promotional strategies and to justify accountability of its marketing investment in the Korean beef market. The objective of this study is to estimate the economic impact of USMEF marketing investment for beef on U.S. beef performance in South Korea. The study determines the effectiveness of USMEF’s generic beef market development and promotion program in South Korea, by developing an econometric import demand model for U.S. beef and eliciting benefit–cost ratio (BCR) of USMEF’s promotion investment. From this analysis, (1) the relationships between selected uncontrollable and controllable economic variables and the U.S. beef demand in South Korea are assessed; and (2) with BCR simulation analysis, the return on promotion investment (ROI) of USMEF is derived.     

Market Power of Domestic Marketers and its Influence on the Consequences of the Korea–US and Korea–Australia FTAs on the Beef Market

Domestic, US and Australian beef, which are differentiated by country of origin, are sold in Korea. In this differentiated product market, tariff reductions through Free Trade Agreements (FTAs) are expected to strengthen the competitiveness of imported beef and, therefore, to mitigate the effects arising from the market power of domestic marketers. The present study develops a simulation model that evaluates this mitigating effect by explicitly reflecting the market structure that domestic beef marketers constitute. The simulation results indicate that the farm-retail marketing margin would decrease by 10.59% or 6.79% due to the Korea–US and Korea–Australia FTAs, respectively, if domestic beef marketers formed a cartel or an oligopoly market (i.e. the degree of market power is 0.5), while the marketing margin under a competitive market scenario is simulated to have no change. The value of beef production would decrease by 1009 million dollars if the marketers form a cartel and hence exercise monopoly power. The FTAs are simulated to reduce the value of beef production by 564 million dollars under the competitive market scenario.     

Construction of Preferred Product Profiles and Product Differentiation

Abstract

This paper illustrates a methodology called choice modeling (CM) that allows a comparison between beef quality preference profiles of three different merchandising groups in South Korea. The CM data was collected from three equally proportioned retailer, wholesaler and importer groups in South Korea by a mail survey. Multinomial logit model (MNL) estimation of the CM data showed that all three merchandising groups currently define preferences for imported beef cut with narrow range and specificity. The choice modeling (CM) technique that was applied in this study is found to be effective in eliciting product profile of a beef cut that is preferred specifically by a particular merchandising group. Construction of a preferred product profile of a beef cut for each merchandising group provides a basis for marginal analysis of factor level changes on buyers' purchasing choices. Information on preferred product profiles and marginal analysis of three merchandising groups' beef purchasing behavior can facilitate differentiated product development and marketing programs at different stages of the beef supply chain in Korea.