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Derived demand for disaggregated cheese products imported into Japan

Author

Listed:
  • Andreas P. Christou

    (Food and Resource Economics Department, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL 32611)

  • Richard L. Kilmer

    (Food and Resource Economics Department, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL 32611)

  • James A. Sterns

    (Food and Resource Economics Department, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL 32611)

  • Shiferaw T. Feleke

    (Food and Resource Economics Department, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL 32611)

Abstract

The objective of this article is to estimate the derived demand for imported cheese products into Japan when cheese import data are disaggregated by specific cheese group and by source country of production. We provide empirical measures of the sensitivity of demand to changes in total imports, own-price, and cross-prices among exporting countries for four market segments of the cheese category. Derived demands for U.S. fresh, grated, and processed cheese products are perfectly inelastic, and it is thus suggested that competition in these segments be based upon differences in product characteristics. However, the derived demand for “other” cheese is elastic, and competition can be price driven. Hence, an advantage of this paper's approach is that disaggregating import data for a product category helps identify specific marketing strategies for market segments within the category. [EconLit citations: Q110, Q130, Q170.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 1-16, 2005.

Suggested Citation

  • Andreas P. Christou & Richard L. Kilmer & James A. Sterns & Shiferaw T. Feleke, 2005. "Derived demand for disaggregated cheese products imported into Japan," Agribusiness, John Wiley & Sons, Ltd., vol. 21(1), pages 1-16.
    • Handle: RePEc:wly:agribz:v:21:y:2005:i:1:p:1-16
    DOI: 10.1002/agr.20030
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    References listed on IDEAS

    as
    1. Washington, Andrew A. & Kilmer, Richard L., 2001. "The Derived Demand For Imported Cheese Into Japan By Country," 2001: International Trade in Livestock Products Symposium, January 2001, Auckland, New Zealand 14551, International Agricultural Trade Research Consortium.
    2. Truett, Lila J. & Truett, Dale B., 1998. "The demand for imports in Korea: a production analysis approach," Journal of Development Economics, Elsevier, vol. 56(1), pages 97-114, June.
    3. Burgess, David F, 1974. "A Cost Minimization Approach to Import Demand Equations," The Review of Economics and Statistics, MIT Press, vol. 56(2), pages 225-234, May.
    4. Washington, Andrew A. & Kilmer, Richard L., 2002. "The Derived Demand For Imported Cheese In Hong Kong," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(1), pages 1-12.
    5. Ulrich R. Kohli, 1978. "A Gross National Product Function and the Derived Demand for Imports and Supply of Exports," Canadian Journal of Economics, Canadian Economics Association, vol. 11(2), pages 167-182, May.
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    Cited by:

    1. Campo, Isabelle Schluep & Beghin, John C., 2005. "Dairy Food Consumption, Production, and Policy in Japan," Staff General Research Papers Archive 12406, Iowa State University, Department of Economics.
    2. Campo, Isabelle Schluep & Beghin, John C., 2006. "Japanese Consumer Demand for Dairy Products," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25285, International Association of Agricultural Economists.
    3. Fofana, Ismaël & Cockburn, John & Decaluwé, Bernard & Mabugu, Ramos & Chitiga, Margaret & Latigo, Alfred & Abdourahman, Omar, 2006. "A Gender-Aware Integrated Macro-Micro Model for Evaluating Impacts of Policies on Poverty Reduction in Africa: The Case of South Africa," Conference papers 331562, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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