Economic Analysis of Incentives for Foreign Direct Investment in Beef Systems in Argentina and Uruguay

The European Union's (EU) ban of hormone-treated beef products in 1989 has virtually eliminated beef exports to the EU from countries where cattle are routinely implanted with growth hormones. This study examined whether or not foreign direct investment in beef systems in Argentina and Uruguay would provide a profitable method for investors who want to export beef to the EU. The results indicate that while investment in these systems is potentially profitable, government interventions designed to keep domestic beef prices low inject considerable risk into the investment decision.


Issue Date:
2007
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/8167
Published in:
International Food and Agribusiness Management Review, Volume 10, Issue 3
Page range:
19-40
Total Pages:
22




 Record created 2017-04-01, last modified 2017-08-23

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