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Increasing U.S. Hard Red Winter Wheat Competitiveness in Latin American Markets

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  • Gallardo, Rosa Karina
  • Holcomb, Rodney B.

Abstract

The United States wheat sector leadership in world markets is facing serious challenges. Canada, Australia, Argentina, the European Union (EU), and the Former Soviet Union (FSU) are growing contenders for international wheat markets. Wheat buyers´ concerns about quality specifications and its consistency have intensified without precedents in the last years. The study focuses on identifying the attributes that wheat buyers most value at the moment of purchase. The study will be done in two stages. The first stage will focus in estimating preferences from actual wheat transactions from different grain-sheds in the HRW growing area. The second stage will focus on the demand from Latin American millers and will estimate their attribute preference and elicit willingness to pay. The second stage will start with Mexican millers, given their importance for the HRW exports. A hedonic price model will be used for the first stage. The second part of the study will attempt to elicit miller´s preferences by using a self explicated approach. Expected results are that the "easy-to-measure attributes": test weight, and protein levels; and all functionality characteristics such as bake absorption, farinograph peak time, farinograph stability, alveograph p/l ratio will be the most valued by the wheat customers. We hypothesize that millers will be willing to pay a premium if those attributes are present in desirable levels. The information should provide insight into the efforts being made by wheat marketing agencies and the U.S. Wheat Associates to promote quality-based marketing of wheat to domestic and foreign millers. Discussion may also include the impacts of quality-based marketing on U.S. share of the world wheat market.

Suggested Citation

  • Gallardo, Rosa Karina & Holcomb, Rodney B., 2006. "Increasing U.S. Hard Red Winter Wheat Competitiveness in Latin American Markets," 2006 Annual meeting, July 23-26, Long Beach, CA 21187, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21187
    DOI: 10.22004/ag.econ.21187
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    References listed on IDEAS

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    1. Wilson, William W. & Dahl, Bruce L. & Johnson, D. Demcey, 2000. "Procurement Strategies: Impacts Of Quality Risks In Hard Wheat," Agricultural Economics Reports 23214, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Langyintuo, A. S. & Ntoukam, G. & Murdock, L. & Lowenberg-DeBoer, J. & Miller, D. J., 2004. "Consumer preferences for cowpea in Cameroon and Ghana," Agricultural Economics, Blackwell, vol. 30(3), pages 203-213, May.
    3. William W. Wilson & Todd Preszler, 1992. "End-Use Performance Uncertainty and Competition in International Wheat Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 556-563.
    4. Dahl, Bruce L. & Wilson, William W., 1999. "Effect Of Hard Red Spring Wheat Consistency On Milling Value," Agricultural Economics Reports 23378, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Wilson, William W., 1986. "Competition in the International Wheat Market," Agricultural Economics Reports 23326, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. William W. Wilson & Todd Preszler, 1992. "End-Use Performance Uncertainty and Competition in International Wheat Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 556-563.
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