Domestic and export demand for distillers’ dried grains (DDG) has increased since the early 2000s. DDG have become an important component of livestock feed given its nutritional value and competitive price. Over the last decade, China has become one of the major export destinations for U.S. DDG. However, there have been recent changes in trade policies in China. In this thesis, we develop an inverse demand equation to analyze the impact of China’s policies on U.S. DDG prices. The model contributes to the literature by incorporating domestic and international demand through which exogenous shocks, such as China’s trade barriers, may affect U.S. DDG prices. Our results provide evidence that U.S. DDG prices are significantly lower during the time that anti-dumping and countervailing duties are in place.
Advisors: Lia Nogueira and Kathleen Brook
