The Global Beef Market: Economic Models, Concerns, and Solutions

This report provides a comprehensive analysis of the global beef market, examining the economic models of individual producers and the broader market dynamics. It delves into the increasing demand for beef, driven by rising incomes and global population growth, and its impact on the environment, including resource depletion and greenhouse gas emissions. The report highlights the concerns related to animal welfare and the environment, discussing potential government interventions such as taxation and regulation to mitigate the negative effects. Furthermore, it explores the roles of vegetarianism and veganism as alternative approaches to reducing meat consumption. The conclusion summarizes the key findings and emphasizes the need for sustainable practices and governmental actions to balance economic growth with environmental protection and animal welfare.

Running Head: ECONOMICS 0
Economics
(Student Name)

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Table of Contents
Introduction......................................................................................................................................2
Model for global market of beef and Individual Producer..............................................................2
Individual Producer Model..........................................................................................................2
Model for global market of beef..................................................................................................4
Concern for Animals and Environment...........................................................................................4
Steps should be taken by Government.............................................................................................5
Role of Vegetarianism and Veganism.............................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
In the recent scenario, one of the fastest growing industries in the global market is the
meat/livestock industry. Meat is considered as one of the normal good that means that the
demand of meat increases with the increase in the income of consumes (Izberk-Bilgin and
Nakata, 2016). Traditionally, meat has been regarded as an expensive food item in the Western
Countries. As world population is increasing as well as economies of the developing countries
are getting stronger, demand for meat is also growing (Escribano, 2016).
In the following part there will be detailed analysis of role and demand of beef in the
international market and its impact on the international market.
Model for global market of beef and Individual Producer
Individual Producer Model

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OP is the price and the company is making supernormal profit by working in such business. The
company has an incentive to build new capacity as well as move along with its LAC. In
continuous with, the excess profits attract new companies to such industry. it lead to enhance in
the supply of quantity, shifting he supply curve to the left as well as fall in the price until it
reaches the point PP1. At OP1, the firms and the industry are in the long run equilibrium.
Model for global market of beef
An industry achieve long run in the condition of:
 All firm are in equilibrium
 There is no entry or exit from the market
Therefore, from the above figure I can be represent that at point E, AR=MR-LAC=LMC. Notice
that E is the minimum point of the LAC curve. It is the point where the firm produces

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equilibrium output at the minimum cost. Hence, in such situation, the market mechanism leads to
an optimal allocation of the resources. The following conditions are associated with the long run
equilibrium of an industry that focuses on:
 The beef is produced a minimum cost
 The selling price covers the marginal costs
 The resources are not wasted. Hence it is used at full capacity
 The companies only earn normal profit
 While the profits are normal therefore the companies can maximize profits.
Concern for Animals and Environment
According to the analysis of above diagram, the consumption of animal is increases with the
decrease in the price. It affect all over the environment at greater level. The diagram represent
that high consumption of animal meat creates the issue of resource depletion. The natural
environment provides the essential ecosystem services such as food, recreational opportunities,
disease regulation that human life ultimately depends upon. As the increase with the population
of human being increase the consumption of animal meat that disturb the whole ecosystem
(Niemyjska et al., 2018).
Moreover, the high demand of beef or animal meat created the issue of global warming.
Retreating glaciers, rising sea level, hurricanes as well as extreme weather conditions are
increases not in frequency as well as intensity. The increase in the green house emission are
majorly due to the agricultural practices, primarily animal husbandry as well as land changing
that are associated with the process of rearing the animals for their meats (Pfattheicher,
Sassenrath and Schindler, 2016).

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Furthermore, every business has their share of environmental as well as social impact with the
meat industry that has obvious impact on the society as well as on the environment. The social
impact include human, animal and contemporary methods of meat production that is tend to
overlook such impact. Poor or developing countries are still face the brunt of consequences that
is being brought about the change in climate. The degradation of environment is a medium for
the current conflicts as well as instability in many areas (Cornish, Raubenheimer and McGreevy,
2016).
Steps should be taken by Government
The government can intervene to mitigate such issue in various manners as they are explained in
below points:
 They can impose high tax on beef and other meat to increase the cost of the meat. It will
help in decreasing the consumption o the meat in an effective and efficient manner.
 They can also regulate strict rules on the meat industry that will resist the new firm to
entre in such market.
 Health program can be arranged by the government in which they can tell the
consequence of meat on the body of individual. The spreading awareness about the meat
can help in decreasing the consumption of meat and beef in the market (Doganova and
Karnøe, 2015).
Such intervention will effect on the sales of individual beef producers. The demand for the beef
will decrease in the market that will also create great impact on the profit margin of the
individual beef producers that forces them to switch to the other line or decrease their business.

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Impose of high tax will increase cost of the products, that will increase the prices of beef. The
increase in the price of beef will decrease the demand consequently.
Role of Vegetarianism and Veganism
In the recent, the individuals represent their concern towards their health and environment that
forces them to switch towards vegetarianism as well as veganism. Therefore, the vegetarianism
and veganism can help the government in taking steps towards the low consumption of meat in
the market. However, it does not represent that government can fully rely on them and remove
their intervention. They can support the government but cannot take full responsibility towards
protecting the environment. The switching in vegetarianism decrease the level of consumption of
meat in the market that will effect on the overall profit margin of the firms therefore, it will
support the government to take effective initiative towards protecting the environment and
animals.
However, still most of the individuals are consuming meat at greater level. Therefore, it is
required for the government to continue interfering in such market to lower the consumption of
meat in the international market to protect the environment effectively (Leite, Dhont and
Hodson, 2019).
Conclusion
From the above analysis it can be concluded that the consumption of meat and livestock’s are
increases day by day. In the global market the individual are keen for the meat in the developed
and developing market. The fall in price of met and beef in the global market increase the
consumption and demand of beef at greater level. It created great issues in the environment and

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the life of individual. The global warming and emission of greenhouse gases are increases due to
the disturbance of ecosystem worldwide. The consumption of meat created great issue
worldwide. Therefore, it is required for the government to interfere in such market by imposing
high tax on such industry. It will help in increasing the entry of ne firm in such market that will
help in protecting the environment in an effective manner. The vegetarianism and veganism will
also support government to protect the environment worldwide.

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References
Cornish, A., Raubenheimer, D. and McGreevy, P. (2016) What we know about the public’s level
of concern for farm animal welfare in food production in developed countries. Animals, 6(11),
p.74.
Doganova, L. and Karnøe, P. (2015) Building markets for clean technologies: Controversies,
environmental concerns and economic worth. Industrial Marketing Management, 44, pp.22-31.
Escribano, A. (2016) Beef Cattle Farms’ Conversion to the Organic System. Recommendations
for Success in the Face of Future Changes in a Global Context. Sustainability, 8(6), p.572.
Izberk-Bilgin, E. and Nakata, C.C. (2016) A new look at faith-based marketing: The global halal
market. Business horizons, 59(3), pp.285-292.
Leite, A.C., Dhont, K. and Hodson, G. (2019) Longitudinal effects of human supremacy beliefs
and vegetarianism threat on moral exclusion (vs. inclusion) of animals. European Journal of
Social Psychology, 49(1), pp.179-189.
Niemyjska, A., Cantarero, K., Byrka, K. and Bilewicz, M. (2018) Too humanlike to increase my
appetite: Disposition to anthropomorphize animals relates to decreased meat consumption
through empathic concern. Appetite, 127, pp.21-27.
Pfattheicher, S., Sassenrath, C. and Schindler, S. (2016) Feelings for the suffering of others and
the environment: Compassion fosters proenvironmental tendencies. Environment and
Behavior, 48(7), pp.929-945.