Welfare changes in the Paraguayan Beef Supply Chain
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Date
2013-09-23
Authors
Patino, Maria
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Abstract
The unprecedented beef export growth observed in Paraguay during recent years generated
a new marketing environment in its livestock sector. While changes in beef marketed along
the supply chain are well-known, no efforts have been undertaken to assess welfare changes of each economic agent of the Paraguayan Beef Supply Chain. Demand and supply systems are estimated for the fattening, slaughter and beef retail markets. A vertical multi-market approach accounting for the linkages among the three markets is used to measure welfare changes of all economic agents in the new marketing environment. The results suggest that consumers and slaughterhouses are worse off, feeder and calf producers are better off and overall society is better off.
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Keywords
welfare, beef, Paraguay, elasticities