P. Lynn Kennedy

Perspectives on evaluating competitiveness in agribusiness industries

This article discusses strategies to improve the competitiveness of agribusiness firms through enhanced customer value. Relationships between customer value and factors that influence the cost structure of the firm are discussed. The relationships between customer value and product differentiation, vertical coordination, niche marketing, total quality management, and related strategies are explored. Finally, implications for managerial decisions in the food and agribusiness sector are presented.

An Examination of Inverse Demand Models: An Application to the U.S. Crawfish Industry

This study analyzes quantity impacts of imported crawfish tailmeat on Louisiana crawfish tailmeat prices, and demonstrates the statistical validity and proper interpretation of cross substitution within inverse demand systems. Among five inverse demand systems, the Differential Inverse National Bureau of Research (DINBR) model shows no violation of econometric assumptions for the data analyzed. By using Allais coefficients proposed by Barten and Bettendorf (1989), we show substitutability among the five fish species.

Analyzing agribusiness competitiveness: The case of the United States sugar industry

The U.S. sugar industry has historically been insulated from volatilities in the world sugar market through the use of an import quota. Recent occurrences in the international agricultural policy arena have brought the need to examine the competitiveness of the United States sugar industry to the fore. Developments with respect to international agricultural policies, combined with a restructuring of United States domestic agricultural policy will undoubtedly reshape the environment in which the U.S. Sugar industry operates. This paper seeks to answer how the various regions and sectors will be able to compete in the world market. This paper starts by outlining an analytical framework to examine the impact of various sources that influence competitiveness in the sugar industry and identify several indicators of competitiveness.

Strategic agricultural trade policy interdependence and the exchange rate: A game theoretic analysis*

Strategic Agricultural Trade Policy Interdependence is modeled using a game theoretic framework. The model distinguishes between the European Community, the United States and a politically passive rest-of-the-world. Particular emphasis is placed on the effect of the exchange rate on the equilibrium outcome of this game. Without compensatory payments to those with the highest political influence, the results suggest that only modest reform is possible. With compensation, liberalization occurs but free trade is not obtained. Simulations also indicate that the U.S. gains incentive to reduce protection given a depreciation of the dollar, while incentive to liberalize trade policies decreases as the dollar appreciates.Research was supported by Minnesota Agricultural Experiment Station project 14065 “Economic Integration and Disintegration in Europe: Implications for U.S. Agriculture.”

Impacts Of Globalization On Agricultural Competitiveness: The Case Of Nafta

Major components of agricultural competitiveness, including definitions, factors, and indicators of competitiveness, are discussed, The case of the North American Free Trade Agreement (NAFTA) is used to illustrate how factors have influenced the competitive position of the NAFTA countries. Traditional neoclassical trade theory is used to evaluate the impact of currency exchange rate fluctuations and trade preferences on agricultural competitiveness. Pre- and post-NAFTA market shares are evaluated for five agricultural commodities of importance to the southern United States. The results of these evaluations are compared with theoretical expectations and discussed with special emphasis on implications for future trade negotiations.

A framework for implementing agribusiness internship programs

Internship programs complement classroom instruction in preparing students for careers in the agribusiness industry. For experiential learning to be an integral part of agribusiness training, the student, industry, and educational institution must each provide input into the design and implementation of the internship program. This article presents a framework for developing and implementing an internship program that emphasizes the interrelationships between agribusiness students, industry, and educators.

A Political Economic Analysis of U.S. Rice Export Programs to Japan and South Korea: A Game Theoretic Approach

The Uruguay Round Agreement on agriculture (UR) has contributed to the increase in U.S. and world rice trade since 1994. Despite this, the Japanese and Korean rice markets continue to be characterized by high levels of trade intervention. This paper attempts to analyze both import markets incorporating econometric estimates and public choice theory in a game theoretic framework. Various scenarios are analyzed. The results show that the overall Nash equilibrium occurs with a 4% tariff reduction for Japan and Korea under the U.S. Market Development Program, which includes the Market Access Program and Foreign Market Development Program.

A SECTORAL ANALYSIS OF AGRICULTURAL TRADE LIBERALIZATION

Complete agricultural trade liberalization between the United States and the European Union is examined with respect to the agricultural sector. A static, partial equilibrium model, distinguishing among the European Union, the United States, and a politically passive rest of the world, is used to simulate agricultural free trade. The results of this research reveal how European Union and United States adoption of free trade affects domestic and world prices, production, consumption, self-sufficiency, and welfare.

An Empirical Investigation of Interproduct Relationships Between Domestic and Imported Seafood in the U.S.

This study seeks to identify interproduct relationships between domestic catfish and a representative selection of imported seafood. In doing so, this study uses multivariate cointegration and structural analyses. Multivariate cointegration analysis suggests that six imported seafood product groupings form a common market with domestic catfish. Structural analysis reveals that 1) domestic and imported catfish are net and gross quantity substitutes; 2) domestic catfish and imported seafood are normal goods; 3) six imported seafood products are identified as gross quantity substitutes for domestic catfish; and 4) according to the derived Allais coefficients, interaction intensities of imported seafood for domestic catfish (from greatest to least) are as follows: tuna, shrimp, salmon, tilapia, catfish, and trout.

Key Issues and Challenges for the 1999 World Trade Organization Agriculture Round

International trade negotiations continue to be a topic of great importance. In December 1993 negotiations for the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) came to a close after more than seven years. The next round of agricultural negotiations is scheduled to begin in late 1999. According to U.S. Trade Representative Barshefsky, agriculture is a field where the next World Trade Organization (WTO) negotiations offer immense potential for direct, concrete benefits via further reduction of tariffs, export subsidies, and domestic supports linked to production (Barshefsky 1998). In addition, this round may be called the Green Round given the potential emphasis on global resource use and environmental issues. The