ESTIMATING IMPORT DEMAND IN THE MEXICAN CHEESE MARKET

Abstract

Mexico is the fastest growing market for US dairy exports and it is the largest market for U.S. cheese. The U.S. has always enjoyed a large share of the Mexican cheese market. However, its share growth has been less dynamic than the share of Europe, Oceania and other countries, despite advantages in proximity, shipping costs, and delivery times. We use an Almost Ideal Demand System to estimate own and cross-price elasticities in the Mexican cheese import market to assess the comparative position of the U.S. relative to other cheese market participants.Demand and Price Analysis, International Relations/Trade,