Evaluating the supply chain of animal protein-based pet food ingredients and international trade of pet food
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Abstract
The overarching theme of this thesis research is economics and management of pet food. This paper is split into two area of focus, looking at the supply of pet food ingredients and international trade of pet food. These areas are related as pet food trade can have an effect on the domestic production of pet food, and therefore the need for ingredients. Pet food is a growing industry and can benefit from increased research into the economics of trade and supply chain characteristics of the industry. The first section of this thesis evaluates the supply chain of animal protein-based ingredients used in pet food and how they flow from human food production to pet food manufacturers. It utilizes predominantly qualitative research methods to shed light on major players and transaction characteristics along the pet food supply chain, as well as identifies constraints and potential growth opportunities in the supply chain. It is important to understand the supply chain of pet food ingredients as the volume of animal protein-based pet food ingredients required grows. The systematic literature review revealed a lack of publicly available research studies offering a detailed analysis of the pet food supply chain. This thesis contributes to filling this gap on pet food analysis in agribusiness and economics literature. The second section of this thesis’s utilizes quantitative research methods to evaluate the effect that regional trade agreements (RTAs) have on the trade of pet food. This was evaluated using a fixed effects gravity model. Here we show that RTAs have a significant positive effect on pet food trade, however there are factors missing from the model that also affect the trade of pet food. Previously, pet food trade has not been heavily evaluated in academic literature. This thesis provides a starting point for the economic analysis of pet food trade which is going to become a more important area in the future as this industry is continues to grow and become more globalized.