INTRODUCTION
The demand for beef is influenced by a number of factors including the cyclical pattern of the economy, consumer preferences, protein substitutes, trade agreements, exchange rate risk, and the
PRICE DETERMINATION
SUPPLY
Canadian beef supply is dependant on various production costs, weather conditions, interest rates, and the size of the Canadian cowherd.
While there are many input and production costs that affect supply, key contributing factors are feed grain prices, labour, and land costs. High corn and barley prices result in less cattle on feed, decreasing the supply of beef. Labour availability and cost remain a large expense in the beef cattle industry, sometimes causing producers to downsize their operations. With inflated
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In times of economic expansion, household income tends to increase and therefore, consumers are willing to pay a higher price for red meat. Beef demand in Canada has an income elasticity of approximately 0.54%, meaning that a 1% increase in consumer income would translate into 0.54% increase in consumption. On the other hand, during recessionary periods household income will decline, and for every 1% decrease in consumer income beef demand will decrease 0.54% (Cranfield 2012). During these periods, consumers may shift their consumption to cheaper protein options or they may reduce meat consumption all …show more content…
Duties and tariffs can make imported beef costlier than beef sourced from other countries, produced in the home country, and other nutrition alternatives. Access to the Japanese market is current important topic regarding Canadian beef exports. Tariffs on Canadian beef are typically 38.5%; however, in August 2017 a safety net tariff was triggered causing tariffs on Canadian beef to raise to 50% until March 2018. (JAPAN TARIFF)With high import tariffs on Canadian beef, red meat sourced from Australia is given an advantage and becomes cheaper to Japanese consumers. The implication of a trade agreement like the Trans Pacific Partnership or a bi-lateral agreement with Japan would lower tariffs, making Canadian beef more affordable and increase the quantity
One of the reasons Canada is very interested in this agreement is because Canada is the world’s third largest pork exporter. Also involved in the deal is Japan, which is currently the world’s largest pork importer. The cost of producing pork in Japan is more than double the cost it is to produce pork in Canada. Therefore, Japan prefers to imports pork and focuses their production efforts in a different industry, because the opportunity costs are way too high. However, Japan currently is imposing a very high tariff on pork imports and has reached a deal with the Australian government, who only have to pay half the tariff rate. Canada is involved in the deal because they want the Japan to lower the tariffs on Canadian pork, so that they (the Canadians) can be competitive in Japan.
this notion of stable supply and demand affected prices of farm commodities. “Low prices on
It is noted that the positive projections advanced prior to a free trade agreement being established have now been discredited as being based on a poor methodology and flawed results (Grinspun & Shamsie, 2007, pp. 3-53). One of the reasons that many Canadian industries have not benefitted from free trade is the presence of continued barriers limiting the capacity of Canadian firms to be competitive in U.S. markets (Grinspun & Shamsie, 2007, pp. 3-53). Canadian exporters of beef, lumber, and a range of other commodities have been unable to compete successfully in U.S. markets, thanks to ongoing efforts by American producers to engage in different forms of protectionism (Grinspun & Shamsie, 2007, pp.
CETA as a trade pact benefits certain Canadian industry’s sectors. One of them is the Food industry which yearly will gain over 1, 5 billion dollars from export to Europe (Ryan, 2014, p. 24-26). European Union will allow Canadian beef to enter the Union without any tariffs (Kimantas, 2014, p.11). It is expected more than 35, 000 tonnes to be exported, thus increasing the initial amount of beef that is originally produced in Canada (Kimantas, 2014, p.11). In addition, the Canada’s Hilton quota, that means a limited amount of beef, can be increased; therefore the amount of beef that have chemicals or contains GMO imported in European Union also will be increased, although many European environmentalists are against such change (Kerr, 2011, p.667). Pork producers will also ...
“I wished to frighten the country by a picture of what its industrial masters were doing to their victims; entirely by chance I stumbled on another discovery--what they were doing to the meat-supply of the civilized world. In other words, I aimed at the public’s heart, and by accident hit it in the stomach” (Bloom). With the publication of a single book, Upton Sinclair found himself as a worldwide phenomenon overnight. He received worldwide response to his novel and invitations to lectures all over the world including one to the White House by President Roosevelt. In late 1904, the editor of the Appeal to Reason, a socialist magazine sent Sinclair to Chicago to tell the story of the poor common workingmen and women unfairly enslaved by the vast monopolistic enterprises. He found that he could go anywhere in the stockyards provided that he “[wore] old clothes… and [carried] a workman’s dinner pail”. Sinclair spent seven weeks in Chicago living among and interviewing the Chicago workers; studying conditions in the packing plants. Along with collecting more information for his novel, Sinclair came upon another discovery--the filth of improper sanitation and the processing of spoiled meat. With the publishing of his novel, Sinclair received international response to its graphic descriptions of the packinghouses. The book is said to have decreased America’s meat consumption for decades and President Roosevelt, himself, reportedly threw his breakfast sausages out his window after reading The Jungle. However, Sinclair classified the novel as a failure and blamed himself for the public’s misunderstanding. Sinclair’s main purpose for writing the book was to improve the working conditions for the Chicago stockyard workers. Sinclair found it...
My Year of Meats (Ozeki) tells the story of two women in two very different parts of the world, and their tumultuous, life-changing journey with meat over the course of a year. Both characters come face to face with situations that test their beliefs and morals, as well as their resolve. There are many themes and lessons that come out of the two women’s’ journey regarding the media, meat products and capitalism, but one of the majors themes that is present in all aspects of the story is the idea of how ideals are carried through society. At one point or another, both women are faced with a choice to either continue on the path their life is currently on, or go against society and change their course. Ruth Ozeki supports the idea in her book that in order to be truly happy and have a less stereotypical society, each individual member of society must be willing to look at their own lives and change it themselves; otherwise, true change will never happen, and society will never be able to move past its limiting views.
Canada’s beef industry in the early 2000’s. “It makes a lot of sense to work with the
In the early twentieth century, at the height of the progressive movement, “Muckrakers” had uncovered many scandals and wrong doings in America, but none as big the scandals of Americas meatpacking industry. Rights and responsibilities were blatantly ignored by the industry in an attempt to turn out as much profit as possible. The meat packers did not care if poor working conditions led to sickness and death. They also did not care if the spoiled meat they sold was killing people. The following paper will discuss the many ways that rights and responsibilities were not being fulfilled by the meat packing industry.
Pollack, P. L. (n.d.). Consumer Demand for Fruit and Vegetables: the U.S. Example, United States Department of Agriculture. Retrieved Nov. 22, 2011, from http://www.ers.usda.gov/publications/wrs011/wrs011h.pdf
Another factor contributing to the shrinking profit margins of beef producers was the overall consistency and quality of the meat. Products such as pork and chicken were beginning to be packaged by Tyson and Perdue as ready to eat meals (Mohr, 1999).
This assignment is my own work, presented in my own words, ALL sources of information have been cited and any direct quotations are contained within quotation marks.
Price elasticity plays an important role in the lives of consumers. The price elasticity of demand is the sensitivity of the demand for a product when its price changes (McConnell, Brue, & Flynn, 2009)iv. Cafes like Panera Bread refuses payments from customers and politely asked them instead to “take what you need, and leave your fair share” (Strom & Gay, 2010)v, resulting in more people getting goods like food at a fair price that they are willing to pay. Based on the income elasticity of demand, consumers can get a better and healthier life as they will buy things with better quality as their income rises. People will go to Italiannies for pizza and not to Pizza Hut as Italiannies offers a better, tastier, healthier and wider variety of choices, even when it is more expensive. With cross elasticity of demand, consumers can get the same quality product at a cheaper price as the rivalry between substitute goods will result in price reduction or improved quality. Consumers get to travel by MAS Airlines at a cheaper price as the rivalry between MAS and other airline companies has caused its price reduction (Gunasegaran, 2011)vi. Consumers with a low budget can also buy what they need. Consumers can get more value from a package offer when buying complementary goods as they “go together”, for example: McDonald's McValue Lunch which comprises of a burger, fries, and soft drink, all for only RM5.95 onwards (My Food Fetish, 2009)vii. With this, consumers can get convenience when buying certain products.
It is estimated that 80% of antibiotics are sent to farms, which implies that the farms may be the source of the problem of antibiotic resistance, so there may be a need to address our current cultivation methods. The current methods of livestock cultivation place the animals into cramped living quarters which is notorious for developing diseases. Without antibiotics this method would fall apart. Sneeringer, Ph.D in economics and M.A in Demographics, predicts that the industry will drop in 1-3% productivity and increase market price by 1-3%. This seems small, however, several families are already struggling to find food. Meat products are used in several “cheap meals” and an increase in their price could leave individuals deprived of balanced nutrition. Sneeringer points out how a farmer would most likely have to hire a veterinarian to examine their livestock. Many small chain companies could suffer from this setback as the extra cost could put them out of business. With antibiotics, a farmer can save money on costly examinations. The destruction of several companies that cannot afford would reduce the supply. The drop in supply would be enough to shift the equilibrium on the supply-demand graph toward a higher price. Another problem with antibiotic restriction is the reduced budget pharmaceutical departments would have to develop and produce new antibiotics. The
When a suppliers' costs changes for a given output, the supply curve shifts in the same direction. For example, assume that someone invents a better way of growing corn so that the cost of corn that can be grown for a given quantity will decrease. Basically producers will be willing to supply more corn at every price and this shifts the supply curve outward, an increase in supply. This increase in supply...
...gement of grass must be taken. On farms where grassland management is poor, rising beef prices will be eroded by rising costs.