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An analysis of the import demand for hard red winter and western white wheat in Asian Pacific rim nations

Wheat is a major agricultural product in the
Pacific Northwest (PNW). The market class primarily
grown in the region is Western White (WW) wheat. An
important export market for PNW wheat producers is the
Asian Pacific Rim (APR), due to its proximity and
economic growth.
Agronomic research has been conducted in recent
years on developing a higher protein wheat in the PNW,
known as Hard Red Winter (HRW). The justification of
this research is that PNW wheat producers could perhaps
become more competitive by diversifying toward HRW
wheat.
The higher protein levels of HRW allow it to be
used as a meat complement, producing sandwich breads and
hamburger buns. The lower protein levels of WW limit
its final products to be cereal-based, such as noodles
and crackers.
Cross-sectional studies have indicated a change in
dietary composition as economic development occurs.
Countries seek improved and varied diets. They move
away from cereal products such as noodles and rice, and
consume more livestock products, especially meats.
The objective of this research is to ascertain
whether or not a higher protein wheat (HRW), which can
be used as a meat complement, becomes more income
sensitive than wheat with cereal-based end uses (WW)
when economic development transpires.
Import demand equations were estimated for a
selected group of APR countries for the two wheat
classes. The estimation was conducted using Ordinary
Least Squares and Seemingly Unrelated Regression. The
data period was from 1970-1971 to 1985-1986.
Only one country, South Korea, produced significant
results to permit comparison of the income sensitivities
for the two wheats. Both HRW and WW possessed negative
income coefficients, this would suggest that South
Korean consumers perceived the final products from which
the demand for the two wheats are derived as inferior goods. This means that HRW and WW wheat imports would
fall as income rose for South Korea. However, the food
self-sufficiency policy of the South Korean government
was advanced as a probable reason for the negative
coefficients rather than a diminishing marginal
propensity to consume food items caused by income
growth. / Graduation date: 1989

Identiferoai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/26872
Date31 January 1989
CreatorsSimone, Mark V.
ContributorsMartin, Michael V., Miller, Stanley F.
Source SetsOregon State University
Languageen_US
Detected LanguageEnglish
TypeThesis/Dissertation

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