Differences in Production Costs Across Compliance Scenarios for Canadian Cow-Calf Producers Accessing the EU Market

• Published in: International journal on food system dynamics Vol. 11; no. 3; pp. 221 - 240
• Main Authors: Gabruch, Mandy, Micheels, Eric T
• Format: Journal Article
• Language: English
• Published: 01-09-2020
• Edition: 1012
• Subjects: Beef production; compliance; growth enhancing products; International Relations/Trade; Livestock Production/Industries; systems dynamics; trade agreements
• ISSN: 1869-6945; 1869-6945
• DOI: 10.22004/ag.econ.346009

Using the 2016 Canada EU Trade Agreement as context, we develop a systems dynamics model to assess changes in the cost of production from a production system oriented toward the North American market where growth enhancing products are allowed, to a European market where these production practices are banned. We outline four different compliance scenarios and use data from western Canadian institutions to estimate how the cost of production for cow-calf producers changes in the different compliance scenarios. We find that compliance costs ranged from $2.13 per head for those firms who already had forgone growth enhancing products and were maintaining detailed records to $34.78 per head for farms who were least compliant with EU standards.