An Economic Model of Red Meat Marketing Margin Behavior in Iran

Authors

Abstract

In this study, in addition to estimating meat demand, live animal supply and marketing services supply for beef and lamb, economic behavior of marketing margin with respect to determinants of meat demand, live animal supply and marketing services supply have been evaluated for years 1998-2004. Results indicate that, as examples, beef and lamb marketing margin elasticity with respect to feed prices are 0.037 and 0.032, respectively. Also, existing of market power in beef and lamb marketing process have increased in their marketing margins. Thereby, by making competition in related market to beef and lamb markets, beef and lamb marketing margin behavior reflect their marginal cost in their marketing process.

JEL Classification: D4, L1, Q1, Q13, Q22

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