Research Teams

DIE 01/22 -Efecto de la trazabilidad individual y obligatoria del ganado en las exportaciones uruguayas de carne bovina a mercados de alta calidad

ISSNISSN/ISBN: 2301-1963
AutorAuthor/s: Zufiría, Florencia
This research paper analyzes the impact of the mandatory traceability system implemented in 2006 in the Uruguayan livestock production system on exports of beef to high quality markets. A time series analysis is performed using data from 1999 to 2019 and two vector error correction models are estimated, one for beef exports to the Euro Zone and other for the United Kingdom, since both markets require mandatory traceability since 2005. The export series (BCU), real exchange rate (IECON) and Gross Domestic Product (FRED) for each market are included in each model, as well as the slaughter (INAC) and the meat price index (FAO). A cointegrating relation is found between exports to the Euro Zone, slaughter and international meat prices, and between exports to the United Kingdom, slaughter and the real exchange rate. There were no direct traceability indicators, therefore two operationalization alternatives are presented. In the first one, three impulses are included into each model at relevant moments of the process, while the second one includes one variable that is equal to zero until September 2006 when the mandatory traceability law is legislated, and then grows until reaching the value of one in February 2012. Using the second alternative, the traceability variable is significant at 1% in both models and as the sign of the estimated coefficients is positive, it is concluded that there is a significant and positive effect of the implementation of mandatory traceability on exports of beef to both the Euro Zone as well as the United Kingdom. The conclusions are subject to the operationalization of traceability and future analysis of other alternatives and export markets could be of use.
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