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The Structure of International Demand for Soybean Products

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  • Heien, Dale
  • Pick, Daniel

Abstract

This study used a new body of quarterly data to estimate multilateral import demand relations for soybeans and soymeal. The countries of origin were the United States, Brazil, and Argentina. The areas of destination were the EEC, Japan, and Eastern Europe. The results indicated that own- and cross-price elasticities were quite large. These demand relations were then inverted and solved for prices to examine the effect on total revenue of increases in supplies from each of the exporting countries. Results showed that, in all cases except one, own-total revenue was inflexible with respect to increase in the own-quantity supplied. These results imply that an increase in exports will be associated with smaller proportional increase in revenue from exports.

Suggested Citation

  • Heien, Dale & Pick, Daniel, 1991. "The Structure of International Demand for Soybean Products," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(1), pages 137-146, July.
    • Handle: RePEc:cup:jagaec:v:23:y:1991:i:01:p:137-146_01
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    1. Mielke, Myles J., 1984. "Argentine Agricultural Policies in the Grain and Oilseed Sectors," Foreign Agricultural Economic Report (FAER) 147524, United States Department of Agriculture, Economic Research Service.
    2. Williams, Gary W. & Thompson, Robert L., 1984. "The Brazilian Soybean Industry: Economic Structure and Policy Interventions," Foreign Agricultural Economic Report (FAER) 147520, United States Department of Agriculture, Economic Research Service.
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    Cited by:

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    2. Javier Ho & Paul Bernal, 2021. "Estimating a global demand model for soybean traffic through the Panama Canal," Journal of Shipping and Trade, Springer, vol. 6(1), pages 1-23, December.
    3. Hanrahan, Kevin F. & Westhoff, Patrick C. & Young, Robert E., II, 2001. "Trade Allocation Modeling: Comparing The Results From Armington And Locally Regular Ai Demand System Specifications Of A Uk Beef Import Demand Allocation Model," 2001 Annual meeting, August 5-8, Chicago, IL 20510, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Odeh, Oluwarotimi O. & Peterson, Hikaru Hanawa, 2003. "The Impacts Of Market Power And Exchange Rates On Prices Of European Union Soybean Imports.," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35137, Southern Agricultural Economics Association.
    5. J. M. Gil & B. Dhehibi & M. Ben Kaabia & A. M. Angulo, 2004. "Non-stationarity and the import demand for virgin olive oil in the European Union," Applied Economics, Taylor & Francis Journals, vol. 36(16), pages 1859-1869.
    6. Lyford, Conrad P. & Yumkella, Kandeh K. & Mercier, Stephanie & Hyberg, Bengt, 1994. "Quality Pricing in U.S. Soybean Exports," Staff Paper Series 201193, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Hyberg, Bengt & Uri, Noel D. & Oliveira, Valencia, 1996. "The quality characteristics of Japanese soybean imports," Japan and the World Economy, Elsevier, vol. 8(1), pages 81-98, March.
    8. Lesser, William H. & Schmit, Todd M. & Ruiz, Lilian M., 1999. "Elite Germplasm For Gmo'S In Brazil: Modeling Government-Agribusiness Negotiations," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(3-4), pages 1-16.
    9. Davis, George C. & Jensen, Kimberly L., 1994. "Two-Stage Utility Maximization And Import Demand Systems Revisited: Limitations And An Alternative," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-16, December.
    10. Wang, Lu & Wu, Rui & Ma, WeiChun & Xu, Weiju, 2023. "Examining the volatility of soybean market in the MIDAS framework: The importance of bagging-based weather information," International Review of Financial Analysis, Elsevier, vol. 89(C).

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