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Protein and the demand for hard wheats

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  • William W. Wilson
  • Wesley Wilson
  • Bruce Dahl

Abstract

Wheat protein is one of the most important specifications used in domestic and import purchase contracts and is used partly as a proxy for functional quality. The purpose of this article is to analyse the demand for wheat delineated by protein class. A choice-based econometric model is specified and estimated using a novel dataset of pooled wheat shipments to individual importing countries. Buyers are importing countries that make purchase decisions among different protein levels. The model frames the choice in terms of attributes of the choice and of the importing countries. Results indicate that there have been shifts over time, and purchase probabilities are highly price elastic and vary across importing regions. Functional characteristics including wet gluten content and extraction rates have significant impacts on purchase probabilities. These results have implications for breeders as it clearly illustrates the role of protein and functional characteristics on demand. The results also have implications for analysts modelling wheat trade in that there are many factors impacting market segments that would not be captured in conventional demand specifications. Copyright 2009 The Authors. Journal compilation 2009 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd.

Suggested Citation

  • William W. Wilson & Wesley Wilson & Bruce Dahl, 2009. "Protein and the demand for hard wheats ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(2), pages 285-303, April.
    • Handle: RePEc:bla:ajarec:v:53:y:2009:i:2:p:285-303
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    File URL: http://hdl.handle.net/10.1111/j.1467-8489.2007.00439.x
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    References listed on IDEAS

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    1. Bruce L. Dahl & William W. Wilson & D. Demcey Johnson, 2004. "Valuing New Varieties: Trade-Offs between Growers and End-Users in Wheat," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(1), pages 82-96.
    2. Wilson, William W. & Gallagher, Paul W., 1990. "Quality Differences And Price Responsiveness Of Wheat Class Demands," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-11, December.
    3. Wilson, William W. & Dahl, Bruce L., 2008. "Procurement Strategies to Improve Quality Consistency in Wheat Shipments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(01), pages 1-17, April.
    4. Dahl, Bruce L. & Wilson, William W. & Nganje, William E., 2004. "Stochastic Dominance in Wheat Variety Development and Release Strategies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), pages 1-18, April.
    5. Wilson, William W., 1989. "Differentiation And Implicit Prices In Export Wheat Markets," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(01), pages 1-11, July.
    6. Wilson, William W. & Gallagher, Paul W., 1990. "Quality Differences And Price Responsiveness Of Wheat Class Demands," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(02), December.
    7. Wilson, William W. & Wilson, Wesley W. & Dahl, Bruce L., 2005. "Protein Demand In Hard Wheats," Agribusiness & Applied Economics Report 23520, North Dakota State University, Department of Agribusiness and Applied Economics.
    8. Bruce L. Dahl & William W. Wilson & D. Demcey Johnson, 2004. "Valuing New Varieties: Trade-Offs between Growers and End-Users in Wheat," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(1), pages 82-96.
    9. World Bank, 2004. "World Development Indicators 2004," World Bank Publications - Books, The World Bank Group, number 13890.
    10. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    11. William W. Wilson & Bruce L. Dahl & D. Demcey Johnson, 2007. "Quality Uncertainty and Challenges to Wheat Procurement," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(3), pages 315-326, September.
    12. Wilson, William W. & Gallagher, Paul, 1990. "Quality Differences and Price Responsiveness of Wheat Class Demands," ISU General Staff Papers 199012010800001447, Iowa State University, Department of Economics.
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    1. Mauro Vigani & Manuel Gomez-Barbero & Emilio Rodríguez-Cerezo, 2015. "The determinants of wheat yields: the role of sustainable innovation, policies and risks in France and Hungary," JRC Research Reports JRC95950, Joint Research Centre.

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