Now showing 1 - 10 of 11
  • Publication
    Spatial price premium transmission for Meat Standards Australia-graded cattle: the vulnerability of price premiums to outside shocks
    (Wiley-Blackwell Publishing Asia, 2017) ; ;
    Stuen, Eric
    Studies of market integration show that price changes are transmitted spatially through arbitrage. Transmission across differentiated agricultural products is important to investigate, but it has not been explored given its complexities for assessment. Using data from Australian cattle markets, we examine the dynamics of Meat Standards Australia price premium transmission between states. An impulse response function analysis using Bayesian vector autoregression with sign restriction identifi- cation shows that shocks to prices and price premiums are partially transmitted contemporaneously between markets and it takes several weeks to complete transmission. In addition, we find an asymmetry of price and price premium shocks originating in Southern Queensland that have an inverse immediate impact in New South Wales, and take months to transmit the usual price response. This outcome may be explained by differences in cattle availability in each state, which can be related to forage availability due to weather conditions. Based on these results, producers can forecast fluctuations on price premiums and adjust their cattle supply accordingly.
  • Publication
    Cassava Smallholders' Participation in Contract Farming in Nakhon Ratchasrima Province, Thailand
    (International Foundation for Research and Development, 2013)
    Tongchure, Siros
    ;
    The most important raw materials for bio-ethanol in Thailand are cassava, sugar cane and molasses. However, cassava has been promoted as a feed stock for ethanol due to the minimal inputs for planting, high productivity and all-year planting and harvesting. The most important factor influencing ethanol using cassava production is the price of cassava feedstock. Contract farming could decrease production costs, increase efficiency in markets, provide lower interest rates, decrease risk management and create symmetric information for cassava smallholders. The scope of this study includes cassava cultivation and factors influencing contract participation using logit analysis. Results from a survey consisting of 130 non-contractors and 127 contractors showed there was a verbal communication between farmers and agricultural cooperatives and written contractual agreement between agricultural cooperatives and processors. In addition, contract participation is significantly influenced by gender of household head, education of household members, number of agricultural groups, input costs, machinery costs, incomes and credit access.
  • Publication
    Variables affecting the propensity to buy branded beef among groups of Australian beef buyers
    Australian beef consumers have different preferences given their characteristics and the effect on expected quality of cues related to health, production process and eating experience. Beef brands using Meat Standards Australia (MSA) grades can help to signal quality and reduce consumers' uncertainty when shopping. The objective of this study is to identify the characteristics of beef buyers and their perceptions about product attributes that affect the propensity to buy branded beef. Binary logistic models were applied identifying differences between all respondents and the potential target market, including buyers in medium to high income segments, and between buyers in the target market who would buy branded beef for taste and health reasons. Variables increasing the propensity to buy branded beef include previous experience, appreciation for branded cuts and concern about quality more than size. Finally, variations in preferences for marbling and cut were found between buyers who would buy branded beef for taste and health reasons.
  • Publication
    Contract bonus systems to encourage biosecurity adoption on small-scale broiler farms in Indonesia
    (CSIRO Publishing, 2018)
    Komaladara, Anak Agung Sagung Putri
    ;
    ;
    Ongoing economic losses in the poultry industry, due to endemic diseases such as highly pathogenic avian influenza and Newcastle disease, ensure that biosecurity adoption on small-scale broiler farms remains a priority for Indonesia. However, given their economic constraints and the nature of the market for their products, these smallholders need to be convinced that there is an economic benefit to them from investing in biosecurity. As the majority of smallholders manage their birds under a contract, these contract companies not only need to be involved in the discussion but, if they are not prepared to assist directly in assisting with improved biosecurity, need to ensure that the conditions of the contract do encourage this smallholder investment. Every contract includes price and performance bonuses and, although the nature of these vary between contract companies, they are designed to encourage productivity improvement. This study evaluates existing contract bonus systems in six major contract companies in Indonesia and their capacity to encourage investment in biosecurity. Results indicated that the price bonus plays a significant role in providing additional smallholder income. If higher than expected sale prices are obtained, contracts with companies 3, 5 and 6 ensure that a greater proportion of this price is passed on to smallholders. Contracts 2, 4, and 6 provide farmers with higher performance bonuses, indicating that these companies encourage farmers to improve production efficiency. Overall estimates after the initial year of biosecurity investment show improvements in returns, where farmers can receive up to USD 2.73 for every dollar invested in biosecurity.
  • Publication
    Beef Marketing Margins in Some Countries in Asia-Oceania
    (Australian Agricultural and Resource Economics Society (AARES), 2012) ;
    Marketing margins in beef markets have been focus of interest to determine the factors affecting price transmissions through supply chains. Data of Australia, New Zealand, Pakistan, China and Malaysia from 1971 to 2008 was analysed using panel methods indicating that margins are affected by export prices, then variations in wholesale prices are captured by intermediaries in the supply chain and partially transmitted to farmers. Variations in farmer prices affect marketing margins in most countries of the region, suggesting that farmers have different degrees of negotiation power. Finally, increases in oil price decrease marketing margins, while a raise in GDP per capita increases them.
  • Publication
    Can Contract Farming of Cassava Contribute to Amelioration of Climate Change in Thailand?
    (2015)
    Tongchure, Siros
    ;
    ;
    There are four main objectives for success in reducing the problems from climate change by increasing the concern with a better understanding of more effective policies for sustainable development of ethanol production by cassava as an alternative energy source in Thailand. The first objective is to examine the agri-business systems of cassava production for producing ethanol as an alternative energy source and to identify types of smallholders who might decide to become involved in contract farming for cassava production. Participation in contracts under agricultural cooperatives in cassava production is based on verbal agreement between farmers and agricultural cooperatives and a written contractual agreement between agricultural cooperatives and ethanol processors. Four categories of smallholders were identified based on ownership of land and assets. The second objective is to evaluate the factors affecting contract farming. Results of examination using Linear Probability, Probit and Logit models show human capital, physical assets, production costs, credit access and agricultural groups are important factors in participation in contracts. Most wealthy smallholders face high transaction costs and hence they are willing to participate in contracting. However, lower-income smallholders, who also faced high transaction costs, were not interested in participation in contract farming. This might be because most of them were older and had lower levels of education. Thus, they might have difficulties adapting to contracting. The third and fourth objectives are to evaluate the effects of contract participation on outcomes.
  • Publication
    Vertical Price Transmission and Spillovers between Agri-Food Chains
    (Taiwan Institute of Business Administration, Taiwan Sheng Gongshang Guanli Xuehui, 2015) ; ; ;
    Salcedo, Salomon
    Price transmission has been used as an indicator of market integration to assess competitiveness of agri-food chains and margins captured in rural areas. However, spillovers between farmer prices have been neglected as a way to improve price transmission and revenue distribution in related agricultural products. This manuscript compares vertical price transmission, effects of marketing input prices and spillover effects between three agri-food chains in three countries, using asymmetric error correction models. Results identified spillover effects between farmer prices, differences between countries in the speed of price transmission and effects of marketing input prices on prices paid tomfarmers. Accordingly, agricultural policies should consider these spillovers between farmer prices when designing interventions to raise incomes in rural areas.
  • Publication
    Propensity to Buy Branded Beef Among Groups of Australian Beef Consumers
    (Australian Agricultural and Resource Economics Society (AARES), 2011) ; ; ; ;
    Umberger, Wendy
    ;
    *Australian Beef Industry has evolved in: • Processing → A more integrated supply chain. • Quality evaluation system → Introduction of MSA grades. *Research Problem: • Eating Quality is guaranteed, but Product Information is low. • Small companies have survived by focusing on niches (Selling differentiated and branded products). • Large Australian beef-producing companies are not selling differentiated and branded products to Supermarkets. *The challenge for the industry → To develop a wider range of brands on a larger scale. Consumers could recognise different attributes, uses and origins. Is this possible?
  • Publication
    Price transmission and relationships between agri-food value chains in Australia and Colombia
    (Australian Agricultural and Resource Economics Society (AARES), 2014) ; ; ;
    Salomon, Selecao
    Sharp fluctuations in agricultural prices have raised questions about asymmetry in vertical price transmissions in agri-food value chains. Farmer and export prices of banana, beef cattle and sugar cane for Australia and Colombia for the period from 1970 to 2010 were analysed, with results indicating cointegration between farmer and export prices in both countries, with the exception of sugar cane in Colombia. Asymmetric error correction models for each value chain identified vertical price transmission, relationships between farmer prices of related value chains in both countries and asymmetries in price transmission, where positive price shocks are more quickly transmitted to farmers.
  • Publication
    Branding fresh food: Who is willing to pay more for beef?
    (Akademiai Kiado Rt, 2017) ; ; ; ;
    Umberger, Wendy
    ;
    Retail beef markets not offering objective grade indicators in-store leave consumers uncertain about the quality of beef they purchase. The introduction of fresh brands can better meet consumers' expectations. Willingness-to-pay for 'ideal' quality cuts represents the maximum premiums brands could achieve. Using Australian consumers' survey data, the maximum premiums are modelled using zero-inflated negative binomial models. Results indicate that buyer's characteristics and perceptions about product attributes influence the premiums for high-quality beef that consumers are willing to pay for a cut considered 'ideal', indicating the maximum premium that brands could achieve in relevant segments. The premiums indicate there is substantial potential for beef cuts that reduce purchase risk by more assuredly meeting buyer's preferences in Australia.