Export Market for Australian Beef Industry

Abstract

The aims of this paper are to examine the constraints and potentials for Australian beef industry on world export markets, and to identify the implications for other beef exporting countries. The survey of beef export constraints suggested that the effect of world beef price and cost of feed grains reduced beef export returns. The relative importance of these variables was tested using a linear regression model. The coefficients of these variables are statistically significant at 10 and 1 per cent levels, and the results suggest that world beef price and cost of feed grains are important determinants of Australian beef exports. The findings of this study also reveal that Australia is highly restricted in its access to world beef markets by the impact of rigid import controls, tariffs and other trade barriers including export subsidies provided by foreign countries for their own exports. Australia needs to give priority to diversification of export markets, particularly in the emerging markets in Africa, Asia, the Americas and the Middle East, where reduced tariff barriers are expected to improve market access. Australia also needs to increase productivity, improve cost efficiency, and undertake market research and promotion in order to be more competitive in the long run and to capture a sizeable market share from its major competitors.     

Australian Meat Industry

Abstract

Australian exports of meat account for about 46 per cent of the total Australian production of meat, and 19 per cent of total world exports of meat. About 52 and 33 per cent of Australian meat exports are sold on Asian and the American markets, respectively. However, Australia is highly restricted in its access to world meat markets by the impact of export subsidies and other trade barriers. The economic and political problems including rigid import controls are barriers to maintaining export sales on some of Australia's traditional Asian markets. The improvement in tariff barriers in Asia, the Americas and other emerging markets is expected to provide improved market access and opportunities for Australian meat. Higher processing and transportation costs beyond the farm gate also contribute to Australia's less competitiveness on world export markets. Australia should, therefore, implement appropriate measures to increase productivity, improve cost efficiency beyond the farm gate and undertake market research and promotion in order to be more competitive in the long run and to capture a sizeable market share from its major global competitors.     

新疆主要肉类产品之间的价格波动关联分析

基于2001年~2017年新疆4种主要肉类产品价格时间序列数据,采用VAR模型和脉冲响应方法,分析了猪肉、牛肉、羊肉和鸡肉之间的价格波动关系以及相互影响程度,结果表明:2001年~2017年新疆各肉类产品价格均呈上涨趋势,其中2017年牛肉、羊肉价格与猪肉和鸡肉价格比较上涨幅度更大;短期内,各肉类产品受自身价格波动影响显著,长期内,牛肉、猪肉价格波动是引致新疆肉类产品市场价格波动的主要因子;从价格波动传导机制上看,猪肉和牛肉二者互为彼此价格波动的影响因素;鸡肉价格相对独立,不受其他肉类产品价格影响;羊肉价格受到猪肉、牛肉价格的影响较显著,但羊肉价格波动对猪肉、牛肉价格的影响有限。通过保证猪、牛产业规模化发展,保护扶持羊产业,鼓励发展鸡产业,建立新疆主要肉类市场价格联动的监测预警机制等措施,可以增加新疆肉类产品有效供给,降低肉类产品价格波动,保障新疆主要肉产品供需平衡。     

Measuring Market Power in the Integrated Malaysian Poultry Industry: New Empirical Industrial Organization Approach

This article examines the level of competition that prevails in the Malaysian poultry markets by using the new empirical industrial organization methodology. We follow the Bresnahan (1982) and Lau (1982) oligopoly model, which allows the identification of market power using aggregated time-series data. The methodology involves the estimation of demand and supply equations for the identification of the parameters measuring the degree of market power. This study uses annual data from 1980–2010 to estimate the demand and supply equations of the poultry market in Malaysia. The estimation results show that the demand for chicken meat is inelastic (?0.124), indicating that consumers are not sensitive to price change. On the other hand, income is elastic at 3.636, implying that poultry meat is a luxury. The cross-price elasticity with respect to beef is ?2.405, rejecting beef as a substitute to chicken meat in Malaysia. The coefficient of conduct parameters for the three subperiods of 1980–1990, 1991–2004, and 2005–2010 measuring market power are 0.6740, 0.5540, and 0.5790, respectively. The results indicate imperfect competitive market in the poultry industry as more farmers opt to join poultry integrators.     

Assessing the demand for value‐based organic meats in Canada: a combined retail and household scanner‐data approach

We apply sets of weekly retail and household scanner data to estimate consumer demand of selected organic and conventional fresh beef products in the Canadian retail market. The main contribution of our study stems from the application of a two‐stage procedure that provides new and deeper insight into consumers' responses to changing retail environment and pricing for organic and conventional meat products. Combined knowledge of point‐of‐sale consumer behaviour for value‐based products, such as organic products, and distinct socio‐demographic profiles of buyers vs. non‐buyers of meat is especially interesting for retail managers and meat industry stakeholders. First, household meat consumption patterns are investigated based on household scanner data that track household's meat purchases in the period 2006–2007. The second step of analysis then involves the estimation of an almost ideal demand system for selected organic and conventional fresh beef products using retail scanner data for the period 2000–2007. The introduction of greater selections in organic product lines across mainstream supermarkets in Canada in response to consumer health concerns is expected to spur retail competition in an otherwise saturated Canadian retail market. The analysis of socio‐demographic profiles in beef consumption using individual household's purchase data reveals that besides regional differences in preferences, household size and resource characteristics are major determinants of point‐of‐sale beef purchase decisions. Our demand system results indicate that organic beef is highly dependent on price and expenditures, whereas demand for conventional beef is mostly driven by income, habits and ‘typical’ Canadian seasonal beef consumption patterns. Altogether, our conclusions on organic beef vs. conventional beef buyers may have further implications for institutional regulations.     

Australian Exports of Horticultural Crops with Special Reference to Fresh Citrus Fruits

Abstract

Exports of horticultural products, in particular fresh citrus fruits, are becoming increasingly important in terms of export earnings for Australia. However, Australian fresh citrus exports account for about 12 per cent of the total production of citrus. About 57 per cent of total exports is sold on Asian markets. The purpose of this study is to examine the problems and prospects for fresh citrus exports on world markets and, in particular, in the Asian region. The findings of the study reveal that higher freight and labour costs have made Australian citrus less competitive on world markets. Thus, producers have an incentive to sell over 80 percent of the total production of citrus on domestic markets. However, there is scope for greater market opportunities in the Asia-Pacific region for Australian fresh citrus fruits. Australia should increase the yield per tree, improve the quality of citrus fruits and identify the need for market promotion and research in order to increase the volume of citrus exports on world markets, especially in the Asia-Pacific region.     

Australian Exports of Dairy Products

Abstract

Exports of dairy products are becoming increasingly important in terms of export earnings for Australia. The industry is the fourth highest foreign exchange earner compared to all Australia's food exports. However, Australian exports of dairy products account for about 67 per cent of the total Australian production of dairy products, and about 13 per cent of total world exports of dairy products. About 68 per cent of Australian dairy products exports are sold on Asian markets. The purpose of this paper is to examine the challenging issues and opportunities for Australian exports of dairy products on world markets and to identify potential and emerging export markets for Australian dairy products. Australia is highly restricted on its access to world dairy product markets by the impact of export subsidies and other trade barriers of overseas markets. The current economic and political crises in Asia are also not favourable to maintain export sales on some of the Asian markets. The export support scheme in Australia has made exporting attractive relative to domestic sales. But it is anticipated that the termination of the scheme after June 2000, will reduce production and exports by 6 and 20 per cent, respectively in the short run. However, in the long run, resources will be efficiently used without government intervention and Australian dairy products will also be competitive on the domestic market. There is scope for greater market opportunities in the emerging markets in Asia and other parts of the world for Australian dairy products. Australia will also benefit from the agreement on international trade that directs exporting countries to reduce export subsidy and remove nontariff trade barriers on exports of dairy products. Australia should implement appropriate measures to inaease the milk yield per cow, to improve the quality of dairy products and to identify the need for market promotion and research in order to increase the volume of dairy product exports on world markets, especially in Asia and other potential markets such as Middle East, Africa, Europe and the Americas.     

A probability model of aggregate meat consumption in the U.S.A.*

This study illustrates the use of Markov analysis to investigate the nature of competition among demand-related products when only aggregate consumption data are available. Applied to meat consumption in the U.S.A. before and after 1976, the year in which per capita beef consumption began to decline, the results indicate that beef has not lost dramatically to chicken. This is contrary to conventional wisdom where consumers are thought to substitute chicken for beef because of the perceived high fat and cholesterol content of beef, and because of the relatively cheaper price of chicken.     

Emu

Abstract

People are making food choices based on fat, calories, and cholesterol, while demanding products that are appetizing. Due to such health issues and the convenience of alternative meat products, consumption of beef has declined among American consumers. In this study emu meat and US Select grade beef ribeye steaks were compared for palatability by a 10-member trained sensory panel. Tests for fat (ether) and moisture (vacuum dry) were performed, along with Warner-Bratzler shear tests. Emu meat was rated as more tender, juicier, and more flavorful than the beef ribeye steaks. Wamer-Bratzler shear measurements were consistent with sensory panel findings. Proximate analysis showed the emu steaks contained less fat and more moisture than the beef ribeye steaks. Emu meat is a “red meat” that may ease consumers' concerns about the consumption of red meat. Its potential as a red meat alternative is due to its tender, juicy, flavorful, and lean qualities.     

Gender after gender: fragmentation,intersectionality, and stereotyping

ABSTRACT

This special issue on gender, markets, and consumption follows another special issue on gender and identity that appeared in 2003 in CMC. Fifteen years later, gender still represents a spirited field of confrontation. Seven articles emerged from the reviewing process, and contribute to three main themes: (1) refined representations of gender, which are fine-tuned to contemporary market and societal changes; (2) transformative contributions sharpening understanding of what gender inequalities are and how to contrast them through consumption and markets; and, (3) critical perspectives on gender, which stimulate societal as well as subjective undoing of gender.     

Socioeconomic Effects of Reducing Household Carbon Footprints Through Meat Consumption Taxes

Beef and sheep products represent the largest emitters of greenhouse gases within the meat group. One way of encouraging Scottish households to substitute purchasing lower carbon footprint meat products such as chicken is through a carbon consumption tax. In this article, the effects of such a tax were studied using a dynamic per capita error correction version of the almost ideal demand system (AIDS). The data used in the analysis were from a Scottish household panel dataset for the years 2006–2011, which allowed disaggregation by three socioeconomic groups. The results suggest that the net application of meat taxes is likely to reduce demand for beef and sheep products irrespective of socioeconomic group. Application of all meat carbon consumption taxes has the potential to reduce household demand for meat products, resulting in a likely 10.5% reduction in Scottish meat emissions.     

Consumers’ Perception and Misperception of Market Leadership and Market Pioneership

Abstract

Ever since Veblen and Simmel, luxury has been synonymous with conspicuous consumption. In this conceptual paper we demonstrate the rise of inconspicuous consumption via a wide-ranging synthesis of the literature. We attribute this rise to the signalling ability of traditional luxury goods being diluted, a preference for not standing out as ostentatious during times of economic hardship, and an increased desire for sophistication and subtlety in design in order to further distinguish oneself for a narrow group of peers. We decouple the constructs of luxury and conspicuousness, which allows us to reconceptualise the signalling quality of brands and the construct of luxury. This also has implications for understanding consumer behaviour practices such as counterfeiting and suggests that consumption trends in emerging markets may take a different path from the past.     

Estimating Consumer Preferences for Value-Added Fish Products in Oman

Abstract

The European meat industry is confronted with substantial changes of consumer preferences in relation to the type and quantity of meat in everyday diet. One of the main reasons behind these changes is the public impression that meat is a “dangerous” to consume food. This feeling is the result of recent food scares where meat played a central role and their effect on consumers' perceptions about meat safety. The research at hand explores the market potential of organic meat in Greece and emphasizes the perceptions about meat consumption held by organic consumers as opposed to those held by non-consumers of organic foods. It is expected that organic consumers will be more interested in a series of quality attributes of meat commonly found in its organic type, in comparison to non-consumers of organic food. However, the main finding of the survey is that consumer demands in relation to meat quality and safety are particularly high, irrespective of meat's production method. The research concludes that the particularly low consumption of organic meat in Greece should be partially attributed to its insufficient differentiation in consumers' minds.     

Crisis in the meat industry: a values-based approach to communications strategy

Meat consumption in the UK has been falling for almost 20 years and the long-standing link between affluence and meat eating has been broken. In 10 years the proportion of the population claiming to be vegan or vegetarian doubled, while those identified as meat avoiders almost quadrupled with a further 40% now being classified as 'meat reducers' by Gallup. Means-End analysis was used for studying the underlying motivations of three groups: meat eaters, meat reducers and vegetarians. Health was found to be the central issue in food choice, but each group sought different terminal values. The view that meat reducers (and possibly even meat avoiders) are demi-vegetarians is challenged by the finding that their underlying motivations are similar to meat consumers and quite unlike those of vegetarians. Persuading meat reducers to adopt a vegetarian diet would require the difficult task of changing the enduring terminal values that they seek to attain through food choice behaviour. In contrast, persuading them to eat more meat would 'only' be a question of changing their beliefs about the healthiness of meat consumption. This paper reports on a study conducted in the UK and considers the implications of the findings for communications strategy.     

Market access,supplier access,and Africa's manufactured exports: A firm level analysis

Abstract

In a large cross-country sample of manufacturing establishments drawn from 188 cities, average exports per establishments are smaller for African firms than for businesses in other regions. Based on the estimation of firm level exporting equations, we show that this is mainly because, on average, African firms face more adverse economic geography and operate in poorer institutional settings. One part of the effect of geography operates through Africa's lower ‘foreign market access’: African firms are located further away from wealthier or denser potential export markets. A second occurs through the region's lower ‘supplier access’: African firms face steeper input prices, partly because of their physical distance from cheaper foreign suppliers, and partly because domestic substitutes for importable inputs are more expensive. Africa's poorer institutions reduce its manufactured exports directly, as well as indirectly, by lowering foreign market access and supplier access. Both geography and institutions influence average firm level exports significantly more through their effect on the number of exporters than through their impact on how much each exporter sells onto foreign markets.     

Foreign competition and quality sorting: Overlaps in US and Chinese exports

The paper studies the performance of US exports conditional on presence and magnitude of Chinese exports in the same foreign markets. Outcomes within product—destination markets are analysed in a panel covering 4,219 products, 67 destinations and 11 years (1996–2006). Generally, an increasing exposure to Chinese export competition is related with lower US export revenues, quantity and market shares. Robustness checks support existence and direction of a causal relationship. Other outcomes, such as product switching, market exit and export unit value adjustments are less clear‐cut. Detailed analyses of responses in individual destinations and product categories suggest that this is, partly, because Chinese and US exports compete only in some markets. In product markets where lower US export quantity coincides with adjustments of export unit value, quality sorting appears to be prevalent. In some cases, however, lower export unit values appear to help export quantities remain unchanged. Overall, the average estimated displacement effects obtained from a pooled sample mask substantial panel‐unit heterogeneity.     

Normalising alternative practices: the recovery,distribution and consumption of food waste

ABSTRACT

Certain practices are excluded from markets, even though they may contribute to more sustainable systems. Other practices are integral to markets despite their highly detrimental impacts. This study investigates how alternative practices in the food sector became integrated into the market through normalisation processes. Using a qualitative approach, it examines the processes by which practices, including the recovery, distribution and consumption of food waste, went from being excluded from a mainstream food market to becoming normalised within it. Normalisation occurs as a result of retracing the biography of an object, building community, rituals and sacrifices. The author discusses theoretical and managerial implications.     

Demand Analysis of Meat in Malaysia

One distinct change in Malaysians' food consumption behavior has been the preference toward meat products. Thus it is meaningful to gain insight of meat consumption patterns. As the market becomes increasingly market-led, information on current meat consumption patterns is required to assess how they are likely to change as prices and incomes change. This study attempts to provide a better understanding of demand for meat products in Malaysia. By utilizing data from Household Expenditure Survey 2004/2005, Engel curve analysis was conducted to derive income elasticities of meat products from QUAIDS model. The estimated income elasticities show that current food consumption patterns are showing signs of convergence toward a Western diet, exhibiting tendency for preference toward red meats (mutton and beef) over white meats (poultry and pork). The estimated elastic own-price elasticities indicate that Malaysian consumers are sensitive to the change in prices of the meat products, with other things remain constant.     

Cuba,the centrally planned cigar,and its rivals

Cuba has a long‐standing reputation for producing premium cigars. Despite the inefficiencies of central planning, Cuba continues to command a dominant global market share in this product outside the United States, whose trade embargo forbids Cuban imports. Cuba's main rivals in premium cigars include the Dominican Republic, Nicaragua and Honduras, which dominate the US market but have a smaller presence elsewhere. All premium cigar exporters face important global demographic and policy changes that will alter the competitive landscape. Public anti‐smoking measures have diminished cigar demand in Europe and other industrialised areas, reinforcing a market growth shift towards emerging markets, especially China. Cuba's strengths in branding, reputation and third‐world ties give it an advantage in developing the high end of these new markets. However, the rigidities of Cuba's economic system make it difficult to increase or adjust premium cigar output and exports in response to new market opportunities. Cost‐efficient competition from its Caribbean rivals allows them to respond to consumer preferences for new cigar blends and lower‐priced brands. The paper concludes by assessing the need for economic reforms and foreign investment in Cuban cigar production that will be necessary for it to maintain or improve its export performance.     

Price Transmission and Threshold Behavior in the African Catfish Supply Chain in Uganda

Abstract

The issue of price linkage in the catfish supply chain in Uganda is important because catfish has become an important traded species with exports to regional markets rising even faster than production, yet limited research has been undertaken to understand the linkages and the non-linearity in the price transmission mechanism. This paper explores the issue using monthly price data from January 2006 to August 2013, and applies threshold autoregressive approaches to test for the existence of a long-run relationship and price asymmetry. The results show that prices in the catfish value chain are tied together by a long-run relationship. It is also revealed that ex-vessel and wholesale price adjustments to retail price changes are symmetric while ex-vessel price adjustments to wholesale price changes are shown to be asymmetric. The direction of causal relationships was observed from the retail to the wholesale and ex-vessel markets, indicating that retailers are the price leaders in the Uganda catfish supply chain.