IDEAS home Printed from https://ideas.repec.org/p/ags/motpco/258712.html
   My bibliography  Save this paper

Changing Structures in the Barley Production and Malting Industries of the United States and Canada

Author

Listed:
  • Buschena, David
  • Gray, Richard
  • Severson, Ethan

Abstract

Substantial changes have taken place recently in the regulation of agricultural trade in North America. The effect of these changes on trade in agricultural commodities is of particular interest to producers and policymakers in the Northern Plains and Rockies region. In this paper, we discuss specifically the malt barley production, malting, and brewing industries in light of these new trade agreements and their ramifications. We evaluate the incentives that free trade provides for mergers between barley malting firms, and then we assess the consequences of these mergers on the realized gains from trade for consumers, barley producers, and malting firms. The globalization of markets has fundamentally changed the world in which economic agents operate. Trade has been liberalized through multilateral world-wide agreements such as the General Agreement on Trade and Tariffs (GATT) and through regional free trade agreements such as those within the European Union, the Canadian/United States Trade Agreement (CUSTA), and the North American Free Trade Agreement (NAFTA). A striking phenomena which has accompanied trade liberalization has been the international merger of firms and the creation of many jointly owned multinational operations. There are two distinct types of malt barley that differ in their yield and in their production areas in North America. Montana and the Canadian provinces grow primarily high-quality two row barley, while North Dakota and Minnesota produce primarily six row malting varieties. Two row barley yields more malt per bushel for maltsters, but it is more prone to disease for barley producers. The opening of the border between the United States and Canada has made large quantities of two row barley available to U.S. malting firms and brewers. The trade policy literature suggests that trade liberalization will have a profound impact on domestic policy choice, making the costs of any government action to increase market prices above the prevailing w
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Buschena, David & Gray, Richard & Severson, Ethan, 1998. "Changing Structures in the Barley Production and Malting Industries of the United States and Canada," Conference Papers 258712, Montana State University, Department of Agricultural Economics and Economics, Trade Research Center.
    • Handle: RePEc:ags:motpco:258712
    DOI: 10.22004/ag.econ.258712
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/258712/files/Montana-State-1998-08-Bushena-et-al.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.258712?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richard Gray & Alvin Ulrich & Andrew Schmitz, 1993. "A Continental Barley Market: Where Are the Gains?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(3), pages 257-270, November.
    2. Schmitz, Troy G. & Koo, Won W., 1996. "An Economic Analysis Of International Feed And Malting Barley Markets: An Econometric Spatial Oligopolistic Approach," Agricultural Economics Reports 23286, North Dakota State University, Department of Agribusiness and Applied Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Richard Gray & James Nolan & Peter Slade, 2024. "The Economic Impact of the Proposed Bunge-Viterra (BV) Merger on the Grain Sector in Western Canada: A Preliminary Assessment," Miscellaneous Publications 341829, University of Saskatchewan, Department of Bioresource Policy Business and Economics.
    2. Johnson, D. Demcey, 1999. "Grain Quality In The Canadian Barley Sector: A Review Of Regulations, Industry Practices, And Policy Issues," Agricultural Economics Reports 23408, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Vollrath, Thomas L., 2003. "North American Agricultural Market Integration And Its Impact On The Food And Fiber System," Agricultural Information Bulletins 33639, United States Department of Agriculture, Economic Research Service.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johnson, D. Demcey, 1999. "Single-Desk Selling Of Canadian Barley: Price Pooling, Price Discrimination, And Systemic Costs," Agricultural Economics Reports 23251, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Wilson, William W. & Johnson, D. Demcey, 1995. "Understanding The Canadian/United States Grains Dispute: Background And Description," Proceedings of the 1st Agricultural and Food Policy Systems Information Workshop, 1995: Understanding Canada\United States Grain Disputes 16737, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    3. Johnson, D. Demcey & Wilson, William W., 1994. "North American Barley Trade and Competition," Agricultural Economics Reports 23475, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Koo, Won W. & Uhm, Ihn H., 2000. "U.S.-Canada Border Disputes In Grains: Dynamic Interface Between The Free Trade Agreement And Trade Remedy Laws," Agricultural Economics Reports 23267, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Joseph M. Santos, 2014. "Back to the futures: An assessment of market performance on the early Winnipeg Grain Exchange," Canadian Journal of Economics, Canadian Economics Association, vol. 47(4), pages 1426-1448, November.
    6. Schmitz, Troy G. & Koo, Won W., 1996. "An Economic Analysis Of International Feed And Malting Barley Markets: An Econometric Spatial Oligopolistic Approach," Agricultural Economics Reports 23286, North Dakota State University, Department of Agribusiness and Applied Economics.
    7. Andrew Schmitz & Richard Gray, 2000. "The Canadian Wheat Board and feed barley," Agribusiness, John Wiley & Sons, Ltd., vol. 16(4), pages 491-501.
    8. Rebecca K Scott, 2014. "Tax Salience vs. Price Uncertainty: Disentangling the Effects of Attention and Rational Habits," Economics Series Working Papers 736, University of Oxford, Department of Economics.
    9. Fengxia Dong & Thomas L. Marsh & Kyle W. Stiegert, 2006. "State Trading Enterprises in a Differentiated Product Environment: The Case of Global Malting Barley Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 90-103.
    10. Boyd, Milton S. & Warketine, Gary, 2001. "Initial Price Policy of Canadian Wheat Board and Declining Barley Exports," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125541, Australian Agricultural and Resource Economics Society.
    11. Buschena, David E. & Gray, Richard S., 1998. "Trade Liberalization And International Merger In Cournot Industries: The Case Of Barley Malting In North America," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20950, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Johnson, D. Demcey & Wilson, William W., 1995. "Competition And Policy Conflicts In Canada-U.S. Barley Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-18, July.
    13. Schmitz, Troy G. & Koo, Won W. & Wahl, Thomas I., 1998. "The Impact Of The Export Enhancement Program On International Feed Barley Markets," 1998 Annual meeting, August 2-5, Salt Lake City, UT 21018, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Schmitz, Troy G. & Gray, Richard S., 2000. "State Trading Enterprises And Revenue Gains From Market Power: The Case Of Barley Marketing And The Canadian Wheat Board," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-20, December.
    15. Koo, Won W., 1998. "Bilateral Trade Of Durum Wheat And Barley Under Custa And Implications For Farm Price And Income," Agricultural Economics Reports 23415, North Dakota State University, Department of Agribusiness and Applied Economics.
    16. Martin, Larry J. & Mayer, Holly & Bouma, Jerry, 2002. "Benefits And Costs Of A Voluntary Wheat Board For The Province Of Alberta," Miscellaneous Publications 18090, George Morris Center.
    17. Harvey Brooks & Troy G. Schmitz, 1999. "Price discrimination in the international grain trade: The case of Canadian Wheat Board feed barley exports," Agribusiness, John Wiley & Sons, Ltd., vol. 15(3), pages 313-322.
    18. Mao, Weining & Koo, Won W. & Krause, Mark A., 1996. "World Feed Barley Trade Under Alternative Trade Policy Scenarios," Agricultural Economics Reports 23272, North Dakota State University, Department of Agribusiness and Applied Economics.
    19. Carter, Colin A. & Wilson, William W., 1997. "Emerging differences in state grain trading: Australia and Canada," Agricultural Economics, Blackwell, vol. 16(2), pages 87-98, May.
    20. Koo, Won W. & Nganje, William E. & Johnson, D. Demcey & Park, Joon J. & Taylor, Richard D., 1999. "Economic Analysis Of The Proposed North Dakota Wheat Pool; Summary," Agricultural Economics Reports 23453, North Dakota State University, Department of Agribusiness and Applied Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:motpco:258712. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/damtsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.