Evolving beef export market access requirements for age and source verification

Abstract

We analyze the economic impacts of changes in age and source verification requirements and associated adjustments in international trade of US beef using an equilibrium displacement model. Because the United States lags behind many countries in adopting animal traceability systems, the United States risks losing export market access. The loss of an export market the size of South Korea’s would cause a decline of US meat industry producer surplus of $1751 million over 10years or 0.23% of its10-year cumulative discounted present value. Additionally, we find that only small increases in US beef exports would be necessary to offset direct costs associated with adoption of age and source verification.