The distortion in the EU feed market due to import constraints on genetically modified soy
Abstract Feed importers in some EU member states face constraints on imports of genetically modified (GM) soy, a practice that may compromise the interests of EU livestock farmers. Using the cases of Sweden and Austria, we analyzed price transmission in the soy supply chain originating from Brazil,...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2023-11-01
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| Series: | Agricultural and Food Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40100-023-00290-7 |
| _version_ | 1827635834184007680 |
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| author | Shyam Kumar Basnet Ranjan Kumar Ghosh Mattias Eriksson Carl-Johan Lagerkvist |
| author_facet | Shyam Kumar Basnet Ranjan Kumar Ghosh Mattias Eriksson Carl-Johan Lagerkvist |
| author_sort | Shyam Kumar Basnet |
| collection | DOAJ |
| description | Abstract Feed importers in some EU member states face constraints on imports of genetically modified (GM) soy, a practice that may compromise the interests of EU livestock farmers. Using the cases of Sweden and Austria, we analyzed price transmission in the soy supply chain originating from Brazil, applying an asymmetric non-linear auto-regressive distributed lag (ARDL) model to identify short-run and long-run asymmetries. The results revealed significant asymmetric effects in how positive and negative price changes are absorbed within the feed industry. Notably, increases in the cost of Brazilian soy swiftly affect the prices for EU farmers, while cost reductions fail to trigger corresponding price decreases. Consequently, stronger constraints on GM soy imports are likely to exacerbate the competitiveness challenges faced by livestock farmers, primarily due to their reliance on non-GM soy. This implies that the restrictions on GM imports need to be relaxed or that low-cost local protein alternatives need to be developed. |
| first_indexed | 2024-03-09T15:32:59Z |
| format | Article |
| id | doaj.art-3d9840faa0934b5da071a9c83082f40b |
| institution | Directory Open Access Journal |
| issn | 2193-7532 |
| language | English |
| last_indexed | 2024-03-09T15:32:59Z |
| publishDate | 2023-11-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Agricultural and Food Economics |
| spelling | doaj.art-3d9840faa0934b5da071a9c83082f40b2023-11-26T12:09:06ZengSpringerOpenAgricultural and Food Economics2193-75322023-11-0111112610.1186/s40100-023-00290-7The distortion in the EU feed market due to import constraints on genetically modified soyShyam Kumar Basnet0Ranjan Kumar Ghosh1Mattias Eriksson2Carl-Johan Lagerkvist3Stockholm Resilience Centre, Stockholm UniversityCenter for Management in Agriculture, Indian Institute of Management Ahmedabad (IIMA)Department of Energy and Technology, Swedish University of Agricultural SciencesDepartment of Economics, Swedish University of Agricultural SciencesAbstract Feed importers in some EU member states face constraints on imports of genetically modified (GM) soy, a practice that may compromise the interests of EU livestock farmers. Using the cases of Sweden and Austria, we analyzed price transmission in the soy supply chain originating from Brazil, applying an asymmetric non-linear auto-regressive distributed lag (ARDL) model to identify short-run and long-run asymmetries. The results revealed significant asymmetric effects in how positive and negative price changes are absorbed within the feed industry. Notably, increases in the cost of Brazilian soy swiftly affect the prices for EU farmers, while cost reductions fail to trigger corresponding price decreases. Consequently, stronger constraints on GM soy imports are likely to exacerbate the competitiveness challenges faced by livestock farmers, primarily due to their reliance on non-GM soy. This implies that the restrictions on GM imports need to be relaxed or that low-cost local protein alternatives need to be developed.https://doi.org/10.1186/s40100-023-00290-7Soy supplyPrice transmissionARDL modelGenetically modified |
| spellingShingle | Shyam Kumar Basnet Ranjan Kumar Ghosh Mattias Eriksson Carl-Johan Lagerkvist The distortion in the EU feed market due to import constraints on genetically modified soy Agricultural and Food Economics Soy supply Price transmission ARDL model Genetically modified |
| title | The distortion in the EU feed market due to import constraints on genetically modified soy |
| title_full | The distortion in the EU feed market due to import constraints on genetically modified soy |
| title_fullStr | The distortion in the EU feed market due to import constraints on genetically modified soy |
| title_full_unstemmed | The distortion in the EU feed market due to import constraints on genetically modified soy |
| title_short | The distortion in the EU feed market due to import constraints on genetically modified soy |
| title_sort | distortion in the eu feed market due to import constraints on genetically modified soy |
| topic | Soy supply Price transmission ARDL model Genetically modified |
| url | https://doi.org/10.1186/s40100-023-00290-7 |
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