Chickens, Feed Grains, or Both: The Mexican Market

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 Me...

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Bibliographic Details
Published inJournal of agricultural and applied economics Vol. 51; no. 2; pp. 286 - 303
Main Authors Arnade, Carlos, Davis, Christopher G.
Format Journal Article
LanguageEnglish
Published New York, USA Cambridge University Press 01.05.2019
Subjects
Agricultural economics
Agricultural subsidies
Agriculture
Chickens
Consumption
Demand
Economic models
Economic theory
Eggs
Feed grains
Feeds
Foreign exchange rates
Imports
International trade
Meat
Poultry
Prices
Sorghum
Subsidies
US exports
Variables
Brazil
United States > US
Mexico
Q11
input demand
Q10
Q21
D12
input trade
Q17
D24
consumer demand
Mexico
Broiler meat output trade
054
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Summary: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.
ISSN:1074-0708
2056-7405
DOI:10.1017/aae.2018.33