A note on quality differences and United States/Canadian wheat trade
1997
Uri, N.D. | Beach, Ed
This paper provides some insights as to why the United States, the fifth largest wheat producer in the world, imports a significant amount of wheat from Canada. The assessment relies on an implicit price function of the import demand for wheat. This function focuses on the physical and intrinsic characteristics of wheat. There is a premium for the protein content and the percentage of heat damaged kernels in wheat. The fact that wheat is a differentiated commodity possessing a mix of physical and intrinsic characteristics together with price considerations helps to explain why the import of Canadian wheat by the United States exists and why this became a significant issue in 1993.
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