AN EMPIRICAL ANALYSIS OF THE DEMAND FOR WHOLESALE PORK PRIMALS: SEASONALITY AND STRUCTURAL CHANGE

A set of inverse wholesale pork primal demand models were estimated to estimate wholesale pork primal own-quantity flexibility's, to determine seasonal price fluctuations, and to examine whether the flexibility's have changed in absolute magnitude over time. Results of this analysis indicate that there is the own-quantity flexibility for some primals differences by season with in the year. Additionally, it was determined that the own-quantity flexibility increased in magnitude (absolute value) over time for some of the primal cuts evaluated here. However, for Hams and Boston Butt the own-flexibility was either unchanged or increased over the period analyzed. Increased cold storage stocks for these primals may have been used to offset the price decline of 1998.Wholesale Pork Primals, Structural Change, Seasonality, Demand and Price Analysis, Livestock Production/Industries,

AN EMPIRICAL ANALYSIS OF THE DEMAND FOR WHOLESALE PORK PRIMALS: SEASONALITY AND STRUCTURAL CHANGE

A set of inverse wholesale pork primal demand models are estimated to determine the own-quantity flexibility, to ascertain seasonal price fluctuations, and to examine whether the flexibilities change in absolute magnitude over time. Results indicate that the own-quantity flexibility varied within the year. Also, it is determined that the own-quantity flexibility increased in magnitude (absolute value) over time for some of the primal cuts evaluated. However, for Hams the price flexibility became positive after early 1998. An increase in cold storage stocks of Hams may have led to the positive own-quantity flexibility and cold storage stocks may have been used to offset the potential Ham price decline of 1998.Demand and Price Analysis, Livestock Production/Industries,

An Empirical Analysis of the Demand for Wholesale Pork Primals: Seasonality and Structural Change

This study focuses on estimating wholesale pork primal demand relationships in order to determine their own-quantity flexibilities, whether these flexibilities have changed over time, and seasonal price fluctuations. A set of equations for pork loin, rib, butt, ham, pork belly, and picnic primals was estimated. Monthly data over an 11-year period were used to determine that own-quantity flexibilities varied across months, that they increased in absolute value over time for some primal cuts, and cold-storage stocks were used as an inventory control measure to reduce price variation for some primal cuts.seasonality, structural change, wholesale pork primals, Demand and Price Analysis,

AN INITIAL LOOK AT THE TOKYO GRAIN EXCHANGE NON-GMO SOYBEAN CONTRACT

Genetically modified organisms (GMOs) such as soybeans and corn have garnered considerable consumer attention due to the concern over potential effects from using these commodities as inputs into food production. In the simplest form, segregation of bioengineered and non-bioengineered crops is an identity-preserved system. For these identity-preserved systems to exist, there must be a market discovery mechanism in place whereby supply and demand factors interact to establish a market price. In May 2000, the Tokyo Grain Exchange began a nongenetically modified organism (non-GMO) soybean contract. This article describes information garnered from the first public-offered identity-preserved marketplace.biotechnology, genetically modified organisms, identity-preserved markets, non-GMO, soybean contract, Tokyo Grain Exchange, Marketing,

EMERGING IP MARKETS: THE TOKYO GRAIN EXCHANGE NON-GMO SOYBEAN CONTRACT

This research provides an overview of the development of the Tokyo Grain Exchange non-GMO soybean contract as an identity preserved futures contract. The development of this contract is unique, relative to the development of other new futures contracts, in that a mature conventional soybean futures contract exists. Particular attention is given to necessary conditions for development of a new futures contract. In evaluating these conditions it was determined that since inception of the Tokyo Grain Exchange non-GMO soybean futures contract, the contract functions like a mature futures contract. This is unique in comparison to results of other studies evaluating the development of futures contracts. Furthermore, the lack of a well defined and liquid cash non-GMO soybean market does not appear to hamper the development of the non-GMO futures contract.Marketing,

Factors Affecting Wheat Proteins Premiums

wheat protein, hedonic modeling, characteristic demand modeling, Crop Production/Industries,

EMERGING IP MARKETS: THE TOKYO GRAIN EXCHANGE NON-GMO SOYBEAN CONTRACT

This research provides an overview of the development of the Tokyo Grain Exchange non-GMO soybean contract as an identity preserved futures contract. The development of this contract is unique, relative to the development of other new futures contracts, in that a mature conventional soybean futures contract exists. Particular attention was given to established necessary conditions for the development of a new futures contract. In evaluating these conditions it was determined that since inception of the Tokyo Grain Exchange non-GMO soybean futures contract the contract has functioned like a mature futures contract. This is unique in comparison to results of other studies evaluating the development of futures contracts. Furthermore, the lack of a well defined and liquid cash non-GMO soybean market does not appear to have hampered the development of the non-GMO futures contract.Crop Production/Industries, Marketing,

THE RESPONSE OF CORN FUTURES MARKETS TO AGRO-BIOTECHNOLOGY NEWS

Consumer perceptions of the potential negative side effects to the body and to the environment as well as consumer opinion regarding ethical issues of developing transgenic products has caused melee at times in the food marketing chain. This has prompted some firms, e.g., Frito Lay and Gerber, to publicly announce that grains and oilseeds produced using transgenic seed will not be used as an ingredient in the production of food. This research found little to support the notion that agro-biotechnology news and/ or recall/non-use announcements affected the CBOT corn futures market. As hypothesized, this result suggests that the market for non-transgenic corn is small relative to aggregate corn supply and demand, which the CBOT corn futures market represents.Marketing, Research and Development/Tech Change/Emerging Technologies,

Determinants of Beef and Pork Brand Equity

Brand Equity, Pork, Beef, Hedonic Modeling, Livestock Production/Industries, Marketing,

MARKET INTEGRATION: CASE STUDIES OF STRUCTURAL CHANGE

The grain/oilseed industry is undergoing considerable structural change in the form of mergers and the addition of new processing facilities to add value beyond commodity grade. The rapid structural changes in this industry call into question the relevance of previous research conducted in these areas. Focusing on two structural change events in northeast Missouri as case studies provides an incisive glimpse at the larger impact of structural change on the grain/oilseed industry. This study addresses the merger of Archer Daniels Midland and Quincy Grain, and the opening of a producer-owned ethanol plant in northeast Missouri to determine if these structural change events altered pricing patterns and linkages in Missouri grain/oilseed markets, and assess the need for re-specification of conventional economic models for price analysis in cases of potential structural change. This research utilizes a three-tier statistical analysis of cointegration tests, Flexible Least Squares analysis, and impulse response functions derived from Vector Autoregressive modeling to investigate the Law of One Price and price relationships among four Missouri grain/oilseed markets. The results are consistent with the Law of One Price, supporting the ideology that markets work, and implying that localized structural change may not significantly affect research shelf-life.Ethanol, Consolidation, Structural Change, Industrial Organization,