Analysing substitutional patterns on demand for poultry meat in South Africa
In recent years, large quantities of poultry meat have been dumped in the South African mar-ket by suppliers in other countries, such as Brazil, USA and the EU, at prices way below the domestic cost of production, threatening local producers and jobs. Therefore, South Africa has imposed countervaili...
| Main Author: | |
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| Format: | First cycle, G2E |
| Language: | Swedish Inglés |
| Published: |
2017
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| Online Access: | https://stud.epsilon.slu.se/10325/ |
| _version_ | 1855571672061444096 |
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| author | Jörnling, Angelica |
| author_browse | Jörnling, Angelica |
| author_facet | Jörnling, Angelica |
| author_sort | Jörnling, Angelica |
| collection | Epsilon Archive for Student Projects |
| description | In recent years, large quantities of poultry meat have been dumped in the South African mar-ket by suppliers in other countries, such as Brazil, USA and the EU, at prices way below the domestic cost of production, threatening local producers and jobs. Therefore, South Africa has imposed countervailing anti-dumping duties on these foreign suppliers in order to protect its domestic poultry sector. In order to develop better understanding of demand relationships among domestic and foreign poultry suppliers to the South African market, this study has empirically estimated the elasticity of substitution between imported and domestically pro-duced poultry meat. The results reveal that the elasticity of substitution ranges between 6.49 and 6.63, indicating that an increase in the prices of the domestically produced poultry meat would lead to a reduce in demand for domestic poultry meat and curtail the expenditure on the product. Hence, domestically produced and imported poultry meat are considered to be similar to the South African households, which indicates that the products can be substituted and are therefore also sensitive to price changes. The elasticity of substitution can be seen as a key parameter to analyse the impacts of these imposed anti-dumping duties. |
| format | First cycle, G2E |
| id | RepoSLU10325 |
| institution | Swedish University of Agricultural Sciences |
| language | Swedish Inglés |
| publishDate | 2017 |
| publishDateSort | 2017 |
| record_format | eprints |
| spelling | RepoSLU103252017-07-06T06:27:07Z https://stud.epsilon.slu.se/10325/ Analysing substitutional patterns on demand for poultry meat in South Africa Jörnling, Angelica Economics and management In recent years, large quantities of poultry meat have been dumped in the South African mar-ket by suppliers in other countries, such as Brazil, USA and the EU, at prices way below the domestic cost of production, threatening local producers and jobs. Therefore, South Africa has imposed countervailing anti-dumping duties on these foreign suppliers in order to protect its domestic poultry sector. In order to develop better understanding of demand relationships among domestic and foreign poultry suppliers to the South African market, this study has empirically estimated the elasticity of substitution between imported and domestically pro-duced poultry meat. The results reveal that the elasticity of substitution ranges between 6.49 and 6.63, indicating that an increase in the prices of the domestically produced poultry meat would lead to a reduce in demand for domestic poultry meat and curtail the expenditure on the product. Hence, domestically produced and imported poultry meat are considered to be similar to the South African households, which indicates that the products can be substituted and are therefore also sensitive to price changes. The elasticity of substitution can be seen as a key parameter to analyse the impacts of these imposed anti-dumping duties. Under de senaste åren har leverantörer från bland annat Brasilien, USA och EU dumpat stora mängder kycklingkött på den Sydafrikanska marknaden. Detta hotar Sydafrikanska produ-center och Sydafrikanska jobb, eftersom priserna på den importerade kycklingen är lägre än produktionskostnaderna för inhemskt producerade kycklingen. I syfte att skydda den in-hemska kycklingproduktionen har Sydafrika infört anti-dumpningstariffer gentemot dessa utländska producenter. Denna studie syftar till att skapa en bättre förståelse för förhållandet mellan efterfrågan på importerad respektive inhemsk kyckling genom att empiriskt uppskatta substitutionselasticiteten på den Sydafrikanska marknaden mellan de båda produkterna. Re-sultaten avslöjar att substitutions elasticiteten sträcker sig mellan 6.49 och 6.63, vilket indike-rar att en prisökning på den inhemskt producerade kycklingen skulle leda till minskad efter-frågan och begränsa utgifterna på produkten. Härav följer att inhemsk och importerad kyck-ling synes vara liknande produkter för Sydafrikanska hushåll, detta innebär att de båda pro-dukterna kan substitueras och är därför även känsliga för prisförändringar. Vid analyserande av anti-dumpningstariffernas effekter kan substitutionselasticiteten betraktas som en nyckel-parameter. 2017-06-28 First cycle, G2E NonPeerReviewed application/pdf sv https://stud.epsilon.slu.se/10325/1/Jornling_a_170628.pdf Jörnling, Angelica, 2017. Analysing substitutional patterns on demand for poultry meat in South Africa : an Armington trade model approach. First cycle, G2E. Uppsala: (NL, NJ) > Dept. of Economics <https://stud.epsilon.slu.se/view/divisions/OID-510.html> urn:nbn:se:slu:epsilon-s-6499 eng |
| spellingShingle | Economics and management Jörnling, Angelica Analysing substitutional patterns on demand for poultry meat in South Africa |
| title | Analysing substitutional patterns on demand for poultry meat in South Africa |
| title_full | Analysing substitutional patterns on demand for poultry meat in South Africa |
| title_fullStr | Analysing substitutional patterns on demand for poultry meat in South Africa |
| title_full_unstemmed | Analysing substitutional patterns on demand for poultry meat in South Africa |
| title_short | Analysing substitutional patterns on demand for poultry meat in South Africa |
| title_sort | analysing substitutional patterns on demand for poultry meat in south africa |
| topic | Economics and management |
| url | https://stud.epsilon.slu.se/10325/ https://stud.epsilon.slu.se/10325/ |