PROTEIN DEMAND IN HARD WHEATS

Wheat protein is one of the most important specifications used in domestic and import purchase contracts. It is used as a proxy for functional quality that is important in domestic markets and to importers. Large differences exist in functional characteristics amongst wheat that vary by protein level and class. The purpose of this paper is to analyze the demand for wheat protein across importing countries and through time. A choice based econometric model is specified and estimated using a pooled data set of wheat shipments. Results indicate that there have been shifts over time, purchase probabilities are highly price elastic and vary across importing regions. In addition, income, traded goods, urbanization, females in the work force, and domestic wheat production all impact purchase probabilities. Finally, wet gluten content and extraction rates have significant impacts on purchase probabilities.