Effects of Changes in the Level of U.S. Beef Imports

Regulatory policies pertaining to beef imports are analyzed on the basis of an econometric model of the livestock sector. The model encompasses the consumption, production, trade, and retail and farm prices of fed beef, other beef, pork, poultry, and inventory levels of livestock used in the production of these products. In terms of consumer welfare, increased beef imports reduce the retail price of all meats with the larger reductions occurring for lower quality of manufacturing beef products, while in the case of producer welfare such increases reduce slaughter steer, cull cow, and feeder calf prices with a heavier burden being placed on cattle breeders relative to cattle feeders.