1 / 16

BSE outbreaks in the United States and Canada and the Impact on Trade

BSE outbreaks in the United States and Canada and the Impact on Trade. Hyun J. Jin Won W. Koo Center for Agricultural Policy and Trade Studies North Dakota State University. BSE.

shamira
Download Presentation

BSE outbreaks in the United States and Canada and the Impact on Trade

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BSE outbreaks in the United States and Canada and the Impact on Trade Hyun J. JinWon W. Koo Center for Agricultural Policy and Trade StudiesNorth Dakota State University

  2. BSE • BSE (Bovine Spongiform Encephalophthy), widely known as “mad Cow Disease” is a lethal, central nervous system disease targeting cattle.

  3. Occurrence of BSE in Europe • First outbreak in the U.K. (1986) • The total number of infected cattle in Europe: • over 34,000 by 1992. • over 180,000 by 2000. • The U.K. government announced the linkage between BSE and Creuzfledt-Jocob disease (vCJD) on March 20, 1996; major alert on consumption of infected beef. • Approximately 135 people worldwide have been infected with vCJD from outbreak in Europe.

  4. Effects • Major reductions in domestic consumption of beef. • Major reductions in exports - most countries banned imports of European beef/cattle. • Increases in imports of beef from uninfected countries, mainly the U.S. and Australia.

  5. Occurrence of BSE in Japan • First case in Chiba in September 2001. • Second case in Hokkaido in November 2001. • Two additional cases in December 2001.

  6. Effects • Major reduction in beef consumption in Japan: • About 60% of Japanese consumers have stopped eating beef since the first outbreak of BSE. • Major reduction in beef exports: • S. Korea, Singapore, China, Malaysia, and Philippines banned imports of Japanese beef. • Increase in imports of beef from uninfected countries such as Australia and the U.S. • Increase in domestic consumption of beef substitutes.

  7. Jin and Koo conducted a study to test whether there was a structural change in Japanese consumers’ demand for meat as a result of the BSE outbreak. • Method: non-parametric approach using WARP test. • Results: experiencing structural change in meat consumption.

  8. BSE outbreak in Canada • First case in May 2003.

  9. Effects • The United States, a major importer of Canadian beef/cattle, banned imports of Canadian beef and cattle and ruminant animal products to minimize BSE risk to the U.S. livestock industry. • Other major importers also banned Canadian beef/cattle. • Moderate reduction in Canadian domestic consumption of beef. • No significant changes in meat consumption pattern in Canada.

  10. BSE outbreak in the United States • First case in the state of Washington in December 2003.

  11. Effects • Major reductions in domestic and export demand: • 5 - 10% reductions in domestic consumption of beef. • Importers banned imports of U.S. beef. • No significant changes in meat consumption pattern in the U.S.

  12. Recent Research • Jin, Skripnitchenko, and Koo conducted a study to analyze the effects of the U.S. BSE outbreak on the beef and cattle industry. • Method: econometric simulation model.

  13. Jin, Kim and Koo conducted another study to analyze the effects on U.S. agribusiness firms. • Method: Event Study

  14. Thank you!

More Related