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Will Country-Of-Origin Labeling (Cool) Be 'Cool' For The U.S. Meat Industry?

Author

Listed:
  • Chung, Chanjin
  • Zhang, Tong
  • Peel, Derrell S.
Abstract
The study develops a Muth-type equilibrium displacement model that is able to estimate impacts of COOL on multistage beef production system and its trade relations. The model includes equilibrium conditions of each production stage with consideration of trade and market structure. A unique feature of this model is that it allows for retailer's oligopsony power separately from processor's market power. Simulation results indicate that the cost of COOL would outweigh the overall industry benefit unless COOL leads to low cost increases and more than a 10% increase in consumers' willingness to pay. The COOL provision is expected to have relatively smaller negative impact on cow-calf producers, backgrounders, and feedlots than on packers and retailers.

Suggested Citation

  • Chung, Chanjin & Zhang, Tong & Peel, Derrell S., 2004. "Will Country-Of-Origin Labeling (Cool) Be 'Cool' For The U.S. Meat Industry?," 2004 Annual meeting, August 1-4, Denver, CO 19934, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:19934
    DOI: 10.22004/ag.econ.19934
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    References listed on IDEAS

    as
    1. Schupp, Alvin R. & Gillespie, Jeffrey M., 2001. "Consumer Attitudes Toward Potential Country-Of-Origin Labeling Of Fresh Or Frozen Beef," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(3), pages 1-11, November.
    2. Dickinson, David L. & Bailey, DeeVon, 2002. "Meat Traceability: Are U.S. Consumers Willing To Pay For It?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-17, December.
    3. Lusk, Jayson L. & Fox, John A., 2002. "Consumer Demand For Mandatory Labeling Of Beef From Cattle Administered Growth Hormones Or Fed Genetically Modified Corn," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(1), pages 1-12, April.
    4. Loureiro, Maria L. & Umberger, Wendy J., 2002. "Estimating Consumer Willingness-To-Pay For Country Of-Origin-Labels For Beef Products," 2002 Annual meeting, July 28-31, Long Beach, CA 19745, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Golan, Elise H. & Kuchler, Fred & Mitchell, Lorraine, 2000. "Economics Of Food Labeling," Agricultural Economic Reports 34069, United States Department of Agriculture, Economic Research Service.
    6. Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(2), pages 1-15, August.
    7. Lusk, Jayson L. & Anderson, John D., 2004. "Effects of Country-of-Origin Labeling on Meat Producers and Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-21, August.
    8. Lusk, Jayson L. & Anderson, John D., 2003. "Modeling The Effects Of Country Of Origin Labeling On Meat Producers And Consumers," Staff Papers 28660, Purdue University, Department of Agricultural Economics.
    9. Loureiro, Maria L. & McCluskey, Jill J. & Mittelhammer, Ronald C., 2001. "Assessing Consumer Preferences For Organic, Eco-Labeled, And Regular Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-13, December.
    10. Umberger, Wendy J. & Feuz, Dillon M. & Calkins, Chris R. & Sitz, Bethany M., 2003. "Country-Of-Origin Labeling Of Beef Products: U.S. Consumers' Perceptions," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(3), pages 1-14, November.
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    Cited by:

    1. Thompson, Stanley R. & Anders, Sven M. & Herrmann, Roland, 2005. "Regional-Origin Labeling with Quality Control: An Economic Analysis," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24656, European Association of Agricultural Economists.
    2. Sven Anders & Stanley Thompson & Roland Herrmann, 2009. "Markets segmented by regional-origin labelling with quality control," Applied Economics, Taylor & Francis Journals, vol. 41(3), pages 311-321.

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