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Substitution between U.S. and Canadian Wheat by Class

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  • Kranti Mulik
  • Won. W. Koo

Abstract

The importation of hard red winter and durum wheat from Canada has been a source of contention among U.S. wheat growers, due to the likeness between domestic and imported Canadian wheat. It has also been investigated as a source of material injury to the U.S. market. We examine the relative substitution between U.S. and Canadian wheat, by class, by treating wheat as an input in flour production. We find that while U.S. hard red spring wheat and U.S. hard red winter wheat are economic substitutes, there is limited price substitution between U.S. and Canadian durum and U.S. and Canadian hard red spring wheat. Quality differences from the millers' perspective may be the reason driving the import demand for hard red spring and durum wheat from Canada.
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Suggested Citation

  • Kranti Mulik & Won. W. Koo, 2011. "Substitution between U.S. and Canadian Wheat by Class," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 59(4), pages 417-433, December.
    • Handle: RePEc:bla:canjag:v:59:y:2011:i:4:p:417-433
    DOI: j.1744-7976.2011.01221.x
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    File URL: http://hdl.handle.net/10.1111/j.1744-7976.2011.01221.x
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    Cited by:

    1. Richard Pedde & Al Loyns, 2011. "Pulling the Plug on Monopoly Power: Reform for the Canadian Wheat Board," e-briefs 118, C.D. Howe Institute.
    2. Baek, Jungho & Mattson, Jeremy W. & Koo, Won W., 2009. "Analyzing Effects of the U.S. Duties on Canadian Hard Red Spring Wheat," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(2), pages 1-22.
    3. Nogueira, Lia & Walters, Cory, 2015. "Welfare Implications of Wheat Breeding Programs," Cornhusker Economics 306913, University of Nebraska-Lincoln, Department of Agricultural Economics.
    4. Daniel Atsbeha & Dadi Kristofersson & Kyrre Rickertsen, 2015. "Broad breeding goals and production costs in dairy farming," Journal of Productivity Analysis, Springer, vol. 43(3), pages 403-415, June.

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