Chickens, Feed Grains, or Both: The Mexican Market. (18th March 2019)

• Record Type: Journal Article
• Authors: Arnade, Carlos; Davis, Christopher G.
• Is Part Of: Journal of agricultural and applied economics. Volume 51:Number 2(2019)
• Page Start: 286
• Page End: 303
• Publication Date: 2019-03-18
• Subjects: Broiler meat output trade, -- consumer demand, -- input demand, -- input trade, -- Mexico; Q10, -- Q11, -- Q17, -- Q21, -- 054, -- D12, -- D24; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/aae.2018.33
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract: This study connects Mexico's imports of U.S. broiler meat with its imports of feed products. Two demand systems for Mexico are estimated: a two-stage Almost Ideal Demand System (AIDS) model for broiler meat and a demand for feed derived from a translog cost function representing the production of Mexican chickens. The models are estimated using data from 1997 to 2016. Given a change in policy where Mexico completely replaces U.S. broiler meat imports, the imports of U.S. feed products will increase. If Mexico does not completely replace U.S. imports with domestic broiler production, our model suggests that Mexican imports of U.S. feed fall.