Structure and concentration of the global sheep meat market

ABSTRACT The objective of this study was to examine the structure and competitiveness of the global sheep meat market using econometric indices (Balassa's revealed comparative advantage, relative position market [RPM], relative export advantage [RXA], imported specialization index [RMA], relative trade advantage [RTA], and net export index [NEI]), as well as sheep meat production, structure, consumption, and trade volume for 151 countries with sustained participation in the global trade market for sheep meat from 2003 to 2013. A hierarchical cluster analysis was used to classify countries. We observed that structure, production, and imports of sheep meat were unconcentrated, e.g., there is no country dominating for those indices; in contrast, the export market was highly concentrated with a duopolistic structure. For trade competitiveness, New Zealand, the Republic of Macedonia, and Sudan were competitive and specialized, while New Zealand and Australia were dominant in the international trade market. The global sheep meat market has become more concentrated, as it has developed as a specialized market. Therefore, there is a need for a holistic vision and understanding of the global sheep meat market so that its impact on farmers can be foreseen.