Export Supply Research Articles

Developing an Animal Welfare Assessment Protocol for Livestock Transported by Sea.

Simple SummaryAustralia exports large numbers of live cattle and sheep by sea to many destinations. Increasingly high animal welfare standards are being required of all livestock industries, and reports of substantial mortality events on some voyages have raised public concerns regarding animal welfare. Mortality rates alone do not assure stakeholders that livestock experience adequate welfare throughout the voyage. Determining the animal welfare status of large animal consignments is complex and requires many measures that are focused on the environment and resources provided, and also on how the animals respond to their surroundings. A list of measures, appropriate for use on cattle and sheep that enter the livestock export supply chain, was determined by reviewing three international welfare assessment protocols, and consulting the Australian livestock export standards and an animal health handbook used by shipboard veterinarians and stockpersons. After preliminary testing of the measures on a sheep and cattle voyage, we propose a protocol that is potentially practical and applicable for pen assessments for both species at pre-export and destination feedlot facilities and during sea transport. Proposing a protocol is the first step towards developing a system that evaluates livestock welfare throughout the export supply chain, and will contribute to improved industry transparency.Australian livestock industries face increased scrutiny from animal welfare groups and society, and the long-distance transport of livestock by sea has recently gained particular attention. Other than non-compliance with broad regulatory standards and voyage mortality rates, there is minimal information to ascertain the welfare of exported livestock. There is currently no standardised, validated animal welfare assessment protocol for livestock on-farm prior to live export or when undergoing transport. This study describes a novel assessment protocol suitable for use on live feeder and slaughter animals exported by sea from Australia. Health and welfare indicators for use in the livestock export supply chain were identified by reviewing three internationally recognised animal welfare assessment protocols for livestock; Welfare Quality®, AWIN and AssureWel, as well as consulting with industry compliance standards and guidelines. This paper proposes a welfare protocol designed to assess sheep and beef cattle exported by sea from Australia, and incorporates environmental-, resource-, management- and animal-based measures. In collaboration with industry, this welfare protocol can be tested on commercial livestock consignments, and be used for ongoing management, for increased transparency and to provide feedback to operators for continuous improvement.

Network resilience modelling: a New Zealand forestry supply chain case

PurposeThe objective of this research is to model supply chain network resilience for low frequency high impact disruptions. The outputs are aimed at providing policy and practitioner guidance on ways to enhance supply chain resilience.Design/methodology/approachThe research models the resilience of New Zealand's log export logistical network. A two-tier approach is developed; linear programming is used to model the aggregate-level resilience of the nation's ports, then discrete event simulation is used to evaluate operational constraints and validate the capacity of operational flows from forests to ports.FindingsThe synthesis of linear programming and discrete event simulation provide a holistic approach to evaluate supply chain resilience and enhance operational efficiency. Strategically increasing redundancy can be complimented with operational flexibility to enhance network resilience in the long term.Research limitations/implicationsThe two-tier modelling approach has only been applied to New Zealand's log export supply chains, so further applications are needed to insure reliability. The requirement for large quantities of empirical data relating to operational flows limited the simulation component to a single regionPractical implicationsNew Zealand's log export supply chain has low resilience; in most cases the closure of a port significantly constrains export capacity. Strategic selection of location and transportation mode by foresters and log exporters can significantly enhance the resilience of their supply chains.Originality/valueThe use of a two-tiered analytical approach enhances validity as each level's limitations and assumptions are addressed when combined with one another. Prior predominantly theoretical research in the field is validated by the empirical investigation of supply chain resilience.

CURRENT STATE AND TRENDS OF THE DEVELOPMENT OF THE WINE INDUSTRY IN UKRAINE

Viticulture and winemaking are traditional and highly profitable industries in the agricultural sector of Ukraine. The wine industry in Ukraine has considerable potential, but through the rapid changes in both the economic and political situation in the country over the past five years, the dynamics of wine production and sales has deteriorated significantly, although the problems of the wine industry have been studied by many domestic scientists, the issue of tracking the situation remains relevant in the industry, identifying new trends in the development of the industry and obstacles to this development. The purpose of the article is to analyze the current state and dynamics of the development of the wine industry in Ukraine, to identify industry problems and ways to solve them. The dynamics and structure of wine production in Ukraine for the period 2013-2018 are analyzed. It is shown that after a sharp deterioration of the situation in the industry in 2014, wine production in the industry gradually began to grow, but in 2017 there was again a decrease in production volumes. The main players in the markets of sparkling and still wines are identified and changes in the distribution of market shares between producers of still wines for the period 2014-2017 are analyzed. Discovered external and internal factors hindering the development of the industry at the present stage. Thus, high excise taxes amid a decrease in the purchasing power of target markets lead to a decrease in demand for wine products in the domestic market. This does not apply only to table wines, the excise tax on which is not increased. At the same time, competition from foreign wine producers is intensifying. An analysis of the dynamics of exports and imports of wine products showed that although Ukrainian wine producers are gradually increasing their exports and expanding the geography of export supplies, wine imports still significantly exceed exports. The positive changes in the industry include the expansion of areas under vineyards by some manufacturers.Thus, the wine-making industry of Ukraine is gradually recovering after the collapse in 2014, but there are a number of problems that impede the dynamic development of the industry. The solution of these problems requires government support, in particular, the establishment of a zero excise tax rate for sparkling, dry and other types of wine, production technology that does not involve the use of ethyl alcohol, and support for winemakers in promoting domestic wines abroad, which will facilitate the development of new markets.

Offshoring Brains? Evidence on the Complementarity between Manufacturing and R&D in Danish Firms*

AbstractBy employing a firm‐level linked employer–employee dataset for Danish manufacturing firms, this paper investigates whether offshoring is complementary to, or a substitute for, research and development (R&D) activities. Offshoring is instrumented with world export supply to circumvent the inherent endogenous nature of the firm's decision to offshore. Results suggest that firms with increased offshoring do in fact tend to engage in further R&D activities at home. Moreover, they also tend to reallocate R&D resources toward product R&D, possibly at the expense of process R&D.

Analysis of the dynamics of gross domestic product and external economic activity of the Russian Federation for 2013−2018

Currently, the Russian Federation is a significant geopolitical and economic player in the modern global world, it has its own interests and traditional partnerships with most states, including business representatives of those countries that are trying to restrain its development through restrictions and partial isolation from global development opportunities . Despite the sanctions and the unfavorable world market conditions, the Russian economy showed high plasticity, stability and adaptability to external changes, which was reflected in the positive dynamics of foreign trade growth in the existing conditions. Therefore, the purpose of this article was to conduct a comprehensive analysis of the dynamics of official statistics on economic growth and foreign trade in the Russian Federation for the period 2013-2018. To achieve this goal, the following tasks were solved: 1) an analysis of the dynamics of the gross domestic product of the Russian Federation for the period 2013-2018; 2) the role of foreign trade in the gross domestic product of the country is estimated through the calculation of foreign economic quotas; 3) analyzed the dynamics of foreign trade, imports and exports of the Russian Federation; 4) revealed the shares of product groups in the structure of exports and imports, as well as the most significant counterparties of the Russian Federation. The hypothesis of the study was the thesis of the interdependence of the volume of economic growth and foreign economic activity, including taking into account changes in foreign economic conditions. The article provides a retrospective analysis of the dynamics of economic growth in terms of nominal value and purchasing power parity, as well as the dynamics of foreign trade of the Russian Federation for the period 2013-2018. A preliminary forecast of foreign trade volumes for 2019 is given. The calculation of foreign economic, export and import quotas for the same period. The Russian specifics of the dynamics and structure of export supplies and import flows, as well as the structure of both imports and exports by counteragent countries and enlarged groups of the commodity nomenclature of foreign economic activity, are examined. For the period under review, the nominal GDP fell by 28.8%, while in terms of purchasing power parity, the Russian economy grew by 5.7% over the same period. At the same time, the largest drawdown in the economy occurred in the middle of the period; in recent years, the situation in the economy has improved. The role of foreign trade in the formation of GDP during the period was relatively stable, with the exception of 2018, when the foreign trade quota sharply increased (as well as export and import). The dynamics of foreign trade and export quotas in the Russian Federation are almost identical, while imports depend on export earnings. For the study period, foreign trade turnover of the Russian Federation decreased by 18.4%, export volumes decreased by 14.8%, import purchases decreased by 24.5%. The main problem of the economy and foreign economic activity remains its dependence on the export of mineral products.

Political economy of the US–Mexican tomato trade agreement

AbstractWe develop a political economy model to analyse the US–Mexican tomato trade agreement by treating the minimum import price as a negotiated settlement. We incorporate the special characteristics of the US–Mexican tomato dispute, namely trade among large countries, the role of competing fresh and processed tomato lobbies, quota revenues accruing to Mexican producers, bargaining for a minimum import price rather than a tariff, and the role of the Canadian tomato market. We show the importance of the size of the lobby group's supply, the weight elected officials' place on national welfare, and the elasticities of export supply and import demand in determining the optimal price wedge. For the United States, larger fresh tomato or cherry–grape tomato supply intensifies the degree of protection awarded to US growers, while US processors work to mitigate this effect. From Mexico's perspective, larger Mexican fresh or cherry–grape output induces a push towards free trade due to the agreement's depressing effect on Mexican prices, while Mexican processors and quota revenues exacerbate the price wedge.

Logistics optimization for a coal supply chain

The Hunter Valley coal export supply chain in New South Wales, Australia, is of great importance to the Australian economy. Effectively managing its logistics, however, is challenging, because it is a complex system, covering a large geographic area and comprising a rail network, three coal terminals, and a port, and has many stakeholders, e.g., mining companies, port authorities, coal terminal operators, rail infrastructure providers, and above rail operators. We develop a matheuristic logistics planning system which integrates, amongst other concerns, train scheduling, stockpile management, and vessel scheduling. Different components of the supply chain are modeled at different levels of granularity. An extensive computational study has generated insights into the bottlenecks in the logistics system, which are used to guide changes in operating policies and future investments. The planning system uses a solver-independent modeling technology. This allowed us to observe differences between the performance of constraint programming and mixed-integer programming in the context of a rolling-horizon approach, due to custom search heuristics.

China's Growing Influence in Latin America

AbstractThis article examines China's growing influence in Venezuela and other parts of Latin America as it seeks to secure a steady supply of cheap oil and new export markets. In recent years, China has offered loans to cash‐strapped nations in the region on better terms than those offered by the United States and other multilateral lending institutions. China's growing influence worries the United States and other global observers who fear the spread of anti‐democratic and anti‐capitalist views. China maintains that its only interest in the region is economic. The current political turmoil in Venezuela offers China the opportunity to assuage these fears by supporting the presidency of Juan Guiado.

Determinants of export supply in Pakistan: A sector wise disaggregated analysis

This study aims to investigate the impact of supply-side factors on the export performance of Pakistan at a disaggregated level. It has identified major export categories of Pakistan and constructe...

Diversification of lentil production

Production and processing of lentil as a valuable leguminous crop with a high content of beneficial nutrients (fiber, protein, minerals and vitamins), a low glycemic index, and a low-calorie content (295 kcal per 100 grams of raw lentils) has great potential for domestic economy. The world market of lentil is analyzed, prospects for increasing the level of its use in domestic markets are identified. An evaluation of the crop processing by an extrusion method is given. The statistical data of the Federal State Statistics Service, the Ministry of Agriculture of Russia, information materials of Russian and foreign research organizations and companies are studied. The methods of complex structural-dynamic analysis and the expert-analytical method of data processing are used. It is found that lentils contain the largest amount of protein among the rest of the plants, which is a source of essential amino acids (isoleucine and lysine), and that the use of this crop in feed production along with soya bin is promising and appropriate. Based on the analysis of gross yields of lentil in federal districts of Russia in 2010-2019 and export supplies of the crop revealed that the domestic lentil export market expanded 6.1 times, but the country’s lentil consumption decreased 1.18 times. Thus, in the current economic conditions, the issue of finding the use of lentils as a raw export product and expanding the potential for using lentils in the domestic market is relevant. It is proposed to expand the possibilities of using lentils by extruding it, which will allow to have high quality products with good biological value and consumer properties on the domestic market.

Empirical analysis of US bilateral corn trade: Evidence from Japan, Mexico, China, South Korea, and the European Union

Aggregate export supply function for US corn and bilateral import functions for US corn by Mexico, Japan, China, South Korea, and the EU are estimated using ARDL estimation techniques. The findings...

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KINERJA PERDAGANGAN MINYAK INTI SAWIT INDONESIA DI NEGARA IMPORTIR UTAMA

Sebagai salah satu produsen terbesar di dunia, Indonesia memiliki kepentingan untuk meningkatkan pangsa ekspor minyak inti sawit di tengah isu negatif yang berasal dari negara produsen minyak nabati lainnya terhadap industri minyak sawit dan turunannya; di sisi lain menjaga ketersediaan PKO domestik sebagai bahan baku industri. Penelitian ini bertujuan untuk mengetahui faktor-faktor yang mempengaruhi kinerja perdagangan minyak inti sawit Indonesia. Penelitian menggunakan model ekonometrik persamaan simultan yang terdiri dari 18 persamaan struktural dan 25 persamaan identitas yang diestimasi dengan metode 2SLS (Two Stage Least Squares) menggunakan data time series tahun 1990-2017. Hasil estimasi menunjukkan bahwa perubahan penawaran ekspor minyak inti sawit Indonesia ke negara tujuan ekspor utama responsif terhadap perubahan luas areal minyak inti sawit domestik, peningkatan teknologi, dan dummy kebijakan hilirisasi. Sementara itu, permintaan negara importir utama minyak inti sawit responsif terhadap perubahan harga minyak sawit dunia, pendapatan perkapita penduduk negara, dan harga minyak mentah dunia. Kebijakan hilirisasi yang diiringi dengan perbaikan teknologi, infrastruktur, maupun iklim usaha diperlukan untuk meningkatkan efisiensi industri minyak inti sawit domestik dan mengurangi ketergantungan terhadap ekspor.

Effect of the global financial meltdown on India’s aggregate export volumes

ABSTRACTThis paper sets up a demand-supply model to analyse India’s export performance (in terms of volumes rather than values) between 2000Q1–2014Q4. The main objective is to determine the impact of the financial meltdown of 2008 on India’s export performance. During the meltdown period, decline in price by India’s competitors in the international market resulted in (1) loss of competitiveness of India’s export goods and (2) a complete breakdown of the price mechanism affecting India’s export demand. Though export supply was not significantly affected by the meltdown episode we find evidence that exporting firms turned towards the domestic market to cope with the loss in export. The meltdown episode began to significantly affect India’s export demand and supply equations from 2009Q3. The demand and supply equations after that period became so unstable that ‘nothing worked’ for India’s exporters as they tried to counter the decline in export. Hence there was ample reason for them to panic and seek the government’s help. Government policies aimed at boosting export demand did have a positive impact on India’s export performance. Government policies to boost export supply had no impact except being palliative for the exporters at their moment of crisis

Economy-Wide Effects of Climate Change in Benin: An Applied General Equilibrium Analysis

This research analyzes the economic effects of climate change-induced crop yield losses in Benin. As agriculture is a large sector in Benin, the climate change-induced crop yield losses are expected to affect the entire economy as well as household welfare in both rural and urban areas. The paper applies a dynamic general equilibrium model and simulates productivity shocks in the agricultural sector derived from climate change scenarios for Benin. The findings show that climate change-induced crop yield losses reduce domestic agricultural outputs by 4.4% and the nonagricultural output by 0.9% on average by 2025. While export supply decrease by 25.5%, import demand increases by 4.9% on average by 2025. As price of labour and capital decline, household income drop for all household groups by 2.5% on average. Ultimately, household welfare decline for all household groups by 2.7% on average. Rural and particularly poor households are projected to experience the worst adverse effects of climate change-induced crop yield losses. The results show that without adaptive strategies to cope with climate change, economic growth and household welfare will decline even further by 2035 and 2045. Subsequently, the paper suggests that adaptation strategies are needed not only at the national level to overcome the projected negative effects on macroeconomic indicators, but also at household level to enhance the adaptative capacity of households, especially the poor households living in rural areas.

Can Russia’s food exports reach $45 billion in 2024?

ABSTRACTIn May 2018 President Putin challenged the agricultural sector to increase the value of food exports to $45 billion by 2024, up from $26 billion in 2018. The article surveys opportunities for increasing the export of grain, meat, and dairy. Supply and demand factors for Russian food exports are examined. Obstacles to the expansion of food exports are also considered. Russia’s export model is supported by significant state interventions in the agricultural sector. The article concludes that despite significant obstacles, there is a reasonable chance that Putin’s target goal can be reached.

Tingkat Kepatuhan Wajib Pajak Umkm Di Jawa Timur, Indonesia

Micro, small and medium-sized enterprises play an important role in national economic development in many countries around the world. Micro, small and medium-sized enterprises have a large contribution to GDP (Gross Domestic Product), the supply of employment and exports of a country. Although it has a large contribution to the national economy, the contribution of micro, small and medium-sized enterprises to the state income from the tax sector is very small. There is a tendency for voluntary tax compliance from micro, small and medium- sized enterprises to be very low. This research aims to study the level of micro, small and medium-sized enterprises of tax compliance in East Java, Indonesia. To measure the level of tax compliance, 3 indicators are used, namely the ownership of the Taxpayer Identification Number (TIN), compliance with paying Income Tax and compliance to fill out and report the Annual Income Tax Return. The results showed that the level of tax compliance in micro, small and medium enterprises in East Java, Indonesia was still very low. Micro, small and medium-sized who have a Taxpayer Identification Number (TIN) is only 37.80%, those who pay Income Tax are only 21.95% and those who fill and report Annual Income Tax Returns of only 18,29%.

Advertising with Supply Control: Some Implications of Norwegian Whitefish Export Promotion

An issue for generic advertising in agricultural markets with unregulated supplies is that the promotion-induced demand shift could lead to a supply response that substantially attenuates the price effects of the promotion. For the generic promotion of fish exports, however, the concern is generally just the opposite—the possibility that extensive government supply controls could render promotion efforts to expand export sales ineffectual due to little or no supply response. This study considers the effects of government whitefish (cod, haddock, and others) supply controls on the effectiveness of the Norwegian Seafood Council (NSC) whitefish export promotion program. We use an econometric simulation model to measure the effectiveness and returns to NSC whitefish export promotion under a range of possible export supply control conditions. Results indicate that effective supply control maximizes the return to promotion and that ineffectual supply control imposes a potentially large opportunity cost on the promoting industry.

Regional structure of oil export from Russia with differentiation by directions of supplies

In the article, the authors analyzed the stable trends in the development of export oil supplies from Russia. The purpose of this article is a short-term forecast of the export of Russian oil with differentiations in the areas of supply. Based on the trend modeling until 2025, a forecast of the total volume of oil exports was made with differentiation in the directions of the supply of liquid hydrocarbons. For each direction of supply, forecast confidence intervals are defined within the limits of which Russian oil exports may be found. The authors showed that export supplies of oil to the energy market of the Asia-Pacific region will increase annually and exports to the European market will decline. The article shows that in the structure of oil supplies from Russia, the main growth is accounted for by foreign countries. In 2018, oil supplies in this direction amounted to 239.6 million tons. At the same time, the share of oil supplies to the European market is annually reduced, reaching only 64% in 2018 (80% in 2011), which is associated with the redirection of oil exports to the Asia-Pacific oil market, primarily to China. In this region, the demand for Russian oil is provided by its higher quality and corresponding chemical composition.

Market Power of Genetically Modified Soybeans Traded Between the United States and Korea

Purpose - The purpose of this study was to investigate market power of soybeans exported by the United States to Korea. Particularly, this paper considered dichotomous characteristics of genetically modified (GM) soybeans and non-GM soybeans and conducted empirical analysis of these two segregated soybean markets to understand key tenets of market power in international soybean trade. Design/methodology - The difference in market power between GM and non-GM soybeans was analyzed using Residual Demand Elasticity (RDE) and Residual Supply Elasticity (RSE) models over the period of 2008~2018. RDE and RSE models under an imperfect competition condition were used to estimate market margins and determine whether GM and non-GM exporters or importers exercised market power in the destination market. Findings - Empirical results suggested that the U.S. had a market power on both GM and non-GM soybean exports. GM exports had greater market power than non-GM exports (14% vs. 9%). By contrast, Korea showed an inability to grab market margin or exert market power in soybean imports. Both export supply by the U.S. and import demand by Korea were found to be more responsive to price changes of GM soybeans than to prices changes of non-GM soybeans. This might be due to a self-interested, profit-seeking strategy by the exporter and many concerned consumers regarding potential adverse effects of GMOs in the importing country. Originality/value - This paper fills the literature gap by exploiting market power in both GM and non-GM markets with explicit consideration of price correlations between GM and non-GM soybeans in Korea. A number of existing studies have provided evidence for market power broadly embedded in international commodity trade. However, studies focusing on Korean markets are limited. No study has explored the country’s soybean trade. Furthermore, the majority of prior studies have almost exclusively focused on the market power from a standpoint of exporting countries without discussing importers’ market structure. This paper also sought to understand potentially distinguished patterns of market power between GM and non-GM markets.

The Eurasian Dimension: Does EAEU-ASEAN Format Have A Future?

The crisis in relations with the West and the subsequent sanctions hampered the development of Moscow’s cooperation with a number of foreign partners. Under these conditions, the role of the EAEU as an agent for promoting Russia's foreign trade interests has dramatically increased, including the formation of Greater Eurasian Partnership, Moscow’s flagship initiative. Russia’s officials have repeatedly stressed that ASEAN is one of the major pillars of the emerging geostrategic space. The 3rd ASEAN-Russian Federation Summit on Strategic Partnership held in Singapore in November 2018 resulted in signing of Memorandum of Understanding (MOU) between ASEAN and Eurasian Economic Commission (EEC) on Economic Cooperation which aims to unlock the potential of cooperation between two integration blocks. The paper addresses the following question – to what extent can Russia-ASEAN strategic partnership create a positive spillover effect on the EAEU-ASEAN ties and trigger the Greater Eurasian Partnership concept. In doing so, the paper focuses on factors which stand behind ASEAN’s rising interest in Eurasian space, EAEU’s strive to develop relationships with Association and the limits of bilateral cooperation in a broader Greater Eurasian framework. It is concluded that the full engagement of ASEAN member states into Eurasian initiatives (even taking into account their successful implementation) depends on several factors. Firstly, to what extent EAEU member states can eliminate structural problems - institutional imbalances, limited export supplies, internal disagreements between the participants. Secondly, it will depend on whether Russia and ASEAN will be able to back up the status of strategic partnership with economic projects. Finally, will the EAEU partners be able to offer ASEAN an attractive interaction format, for example, the Great Eurasian Partnership, which needs to be conceptually filled and linked with ASEAN key initiatives and plans.