Competitiveness of the World Durum Wheat and Durum Milling Industries under alternative trade policies

Abstract

A spatial equilibrium model was developed to evaluate optimal production and distribution of durum wheat for milling and export under alternative trade policies. This study found that the US and Canadian FTA will benefit US durum producers more than Canadian producers. The EEP is important in maintaining US market shares in the world market and the ERP is important for France. Canadian market shares increase when either the EEP or the ERP is eliminated. This study also found that the competitiveness of the milling industry is less sensitive to changes in trade policies than that of the durum wheat industry. © 1993 John Wiley & Sons, Inc.

Measuring regional competitiveness in oilseeds production and processing in Nigeria: a spatial equilibrium modelling approach

“…The use of spatial equilibrium models in studies of cost minimisation abounds in the literature (Omoregie, 1996;Koo et al, 1993;Gibson et al, 1991;Faminow and Sarhan, 1983;Mackay and Toft, 1978;Spencer et al, 1976;Stayner et al, 1975;Takayama and Judge, 1971;King and Logan, 1964;Takayama et al, 1989). The use of the returns approach in modelling competitiveness is not so popular in the literature.…”

“…The cif and fob Nigerian ports as well as port charges and duty rates were obtained from various sources including the Nigerian Groundnut Board NGB (1986), Report (1986), FACU (1989), World Bank (1994) and FA0 Yearbooks (1990-1993.…”

“…The installed capacities of the existing mills were used as the milling capacity constraints. This feature of the model disallowed the concentration of milling activities in the few low-cost mills in some regions (see Gibson et al, 1991;Spencer et al, 1976;Koo et al, 1993). Also, the economic assumption underpinning this operation is that mill sizes determined by the model should be consistent with the capital availability in the milling industry in Nigeria, as mill sizes in excess of 350 todday are presently unaffordable to majority of investors (Omoregie, 1996).…”

Impacts of Trade and Agricultural Policies on the World Malt and Malting Barley Market

“…Labys (1987) provides an international bibliography of various studies that have used a spatial equilibrium framework to analyze commodity markets. Koo, Golz and Yang (1993) use a linear programing framework to analyze optimal production and distribution of durum wheat for milling and exports under alternative trade policies. Koo, Golz and Yang (1993) use a linear programing framework to analyze optimal production and distribution of durum wheat for milling and exports under alternative trade policies.…”

“…Koo (1983) and Johnson and Wilson (1995a,b) use quadratic spatial equilibrium models to analyze trade flows under alternative policies on spring wheat and malting barley and malt, respectively. Koo, Golz and Yang (1993) use a linear programing framework to analyze optimal production and distribution of durum wheat for milling and exports under alternative trade policies. Copithorne (1974) uses a linear programing approach to compare 1967 actual international flows of tractors, harvesting machinery, and cultivating machinery with the ideal least-cost trade flows.…”