A review of the arts of estimating price-responsiveness of feed demand in the European Union

Abstract

This paper-reviews the 'state of the art' of estimating price-responsiveness of the demand for feed ingredients in the European Union (EU). After a brief description of the main characteristics of the EU feed market, several modelling approaches are discussed, These have been categorised into three broad groups:(i) synthetic approaches: (ii) linear programming (LP) approaches; (iii) econometric approaches, Also, some recent extensions of the 'traditional' econometric approach are briefly reviewed, such as the construction of feed demand balances using incomplete information and the measurement of price-induced technical change. Finally, a number of methodological and practical issues are raised.