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Title:World Durum Trade Model
Authors:Kimberly Vachal
University:North Dakota State University
Publication Date:Sep 1994
Report #:MPC-94-35
Project #:MPC-057
TRID #:00669029
Keywords:competition, costs, exports, international, market share, physical distribution, production, transportation, wheat
Type:Research Report – MPC Publications



The objective of this study was to assess the competitiveness of U.S. durum producers in supplying durum by estimating production levels and trade flows under alternative trade scenarios. Mathematical programming was used to compare production levels and distribution patterns for the durum market under protectionist and liberalized market environments. The results of the study indicated that increased EEC exports have had a negative effect on the ability of U.S. and Canadian producers to compete in the world durum market. The U.S. is able to continue to compete with the EEC in the export market, via its EEP program, but has lost a competitive advantage, relative to Canada, in serving its domestic market. Based on model results, a decision by the EEC to discontinue its dedication to the durum export market would significantly increase the competitiveness of Canada in the export market. Increased export sales by Canada would allow U.S. producers to increase competitiveness in its domestic market.

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