U.S. and Canadian Beef Export Price Flexibilities: A Comparision

This paper provides a “what-if” analysis of a possible outbreak of BSE with specific focus on the ensuing decreases in quantities demanded of exported beef products by foreign consumers unconvinced that BSE does not directly cross the species barrier. We make use of an inverse import demand system by which we estimate changes in quantities demanded of 5%, 10%, 20% and 30% to estimate responses in price and the potential impact on the cattle industry in Canada and the U.S.