Applied Economics Teaching Resources

an AAEA Journal

Agricultural and Applied Economics Association

Case Study

Economic Dynamics in the Beef Food Supply Chain under Pandemic Conditions

Grace Melo(a), Luis Peña-Lévano(b), and Kori Luengo(c)
Texas A&M University(a), University of Wisconsin–River Falls (b), and Pontificia Universidad Católica de Chile(c)

JEL Codes: A22, A23, A30, Q13, Q11
Keywords: Case study, beef, processed food, meat supply, marketing channel, multi-sector model

Publish Date: May 25, 2022
Volume 4, Issue 4

View Full Article (PDF) | Request Teaching Notes/Supplemental Materials

Abstract

This case study discusses the potential effects of COVID-19 pandemic on the U.S. beef market during the first half of 2020. This sector confronted significant economic distortions caused by the increasing rate of infection in meat processing and packaging plants. We illustrate the COVID-19 related effects on the beef industry by using cattle-meat marketing channel framework, which comprises of two markets: cattle raw meat cuts supplied by farmers, and retailed processed meat sold by retailers and wholesale markets to final consumers as packed and processed products. The case study discusses different supply and demand shocks affecting the meat market system during and after the lockdown period. The article also explores the potential changes in equilibrium prices in alternative meat markets and how these could affect prices in conventional meat products. The teaching note discusses the objectives and provides further recommendations on the delivery of the case study, including a team peer evaluation.

About the Authors: Grace Melo is an Accountability, Climate, Equity, and Scholarship (ACES) Faculty Fellow at Texas A&M University. Luis Peña-Lévano is an Assistant Professor at the University of Wisconsin–River Falls (Corresponding author: luis.penalevano@uwrf.edu). Kori Luengo is an Agronomic Engineer at the Pontificia Universidad Católica de Chile.

Copyright is governed under Creative Commons CC BY-NC-SA

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