The U.S. Import of Beef: Substitute or Complement for Domestic Beef Production?
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U.S. beef producers have always been concerned that beef imports may depress prices. Consumer groups have held the opposite view. This research addresses this issue by assessing the impact of beef imports on wholesale domestic beef prices. This is done by estimating the flexibilities between domestic beef, choice and select grades, and imported beef at the wholesale level.
No statistical evidence is found to support either producer or consumer view. This may be resultant of small import volumes of beef. Beef exports, however, have a statistically measurable effect on domestic beef prices, especially the select grade.