Profitability of Incremental Expenditure on Fibre Promotion

The history of marketing, research, development policies and intervention in marketing of the wool clip is reviewed from the perspective of an insider. The overall theme is that politics took over comprehensively from clear economic policy advice on wool marketing in the past 50 years and woolgrowers paid a high price for this. The idea of`integrated marketing' including an export monopoly, a bu¡er stock scheme and coordinated promotion and R&D, collectively a strong interventionist philosophy, has waxed and waned. Having borne most of the costs of these failed policies, remaining woolgrowers can now look forward to a market less distorted by political interference.

Section: Wool Demand and Promotionmentioning

confidence: 99%

The politics and economics of wool marketing, 1950–2000

Richardson

2001

“…Of 40 reported wool supply elasticities, 31 had values less than 0.5. Wool demand elasticities are generally larger in Australia and very large internationally, for example, the excess demand elasticity of −3.4 estimated by Hill et al (1996). The consistency of these estimates suggests that there would be little point in further sensitising these benefit-cost estimates for vulpia research using different elasticity values.…”

Section: Discussionmentioning

confidence: 96%

Economic benefits of public investment in weed management: the case of vulpia in south‐eastern Australia's temperate pasture areas

Vere

Jones

Griffith

2003

Self Cite

The present paper reports an economic evaluation of the long-term benefits to Australia of research by the Cooperative Research Centre for Weed Management Systems (CRC) into the improved management of vulpia , the major annual grass weed of temperate pastures in New South Wales and Victoria. Vulpia reduces livestock production by competition with more desirable pasture species, by the production of low quality feed at critical times of the grazing cycle, and by injury to animals. A 20-year stochastic benefit-cost analysis indicated that reducing the impacts of vulpia in these pastures produced a mean net present value of # A58.3 million and a mean benefit-cost ratio of 33:1. Temperate pasture zone wool producers would capture the largest shares of these benefits, Australian consumers would gain, but wool producers in the rest of Australia would suffer welfare losses from vulpia reductions in the temperate pasture zones.

“…These include increasing production efficiency along the supply chain to lower costs as well as embarking on research and promotion to improve quality and quality image. A follow-up question to this study is: how should industry funds be allocated between research, which improves production efficiency and product quality on the supply side, and promotion, which expands demand (Hill et al 1995). However, the question is beyond the scope of this study and further research is needed to examine the issue.…”

Section: Resultsmentioning

confidence: 99%

Elasticity of demand for Australian cotton in Japan

Chang

Nguyen

2002

Although a relatively small producer, Australia exports more than 90 per cent of its cotton production, making it the world's third largest cotton exporter in recent years. This means that export performance plays a major role in determining the profitability of the Australian cotton industry. The primary aim of this study was to determine the competitive position of Australian cotton in the Japanese market, based on the original non‐linear Almost Ideal Demand System model using data from 1972 to 1998. The main findings are that the USA had a relatively strong market position and that Australia needs to improve its cost competitiveness and quality image to advance its market standing.