IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/267082.html
   My bibliography  Save this article

An Economic Analysis Of Demand And Policies In The Beef Industry

Author

Listed:
  • Nieuwoudt, W. L.

Abstract

Production costs of beef vary because of seasonal changes in the weather and a seasonal variation in prices, which because of its counter-cyclic effect, could have a stabilising effect on supply. The analysis shows that the permit/quota scheme increases the price at the main city abattoirs and it depresses the price farmers receive on country auctions. If permits/quotas reduce production by as little as 5 %, then the value of the permit/quota is estimated at R52 per animal. Large feeders who are allocated quotas receive a windfall gain, but the small farmer who does not receive a quota because he is an irrigular supplier is harmed. The effect of quotas is to restrict beef production artificially. This is- in direct contrast to the effect of research on output, that is, to promote productivity. Because the pressure to sell cattle is greater during droughts, the quota value increases then. Quotas then aggravate the farmers' position during adverse times by limiting the offtake. After good rains quotas may have no value or a negative value as feeders sell cattle just to maintain their quotas.

Suggested Citation

  • Nieuwoudt, W. L., 1985. "An Economic Analysis Of Demand And Policies In The Beef Industry," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 24(2), October.
    • Handle: RePEc:ags:agreko:267082
    DOI: 10.22004/ag.econ.267082
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/267082/files/agrekon-24-02-003.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/267082/files/agrekon-24-02-003.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.267082?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rooyen, J van & Zyl, J van, 1990. "Agricultural Restructuring in South Africa: Some Considerations on the Food Question," 1990 Symposium, Agricultural Restructuring in Southern Africa, July 24-27, 1990, Swakopmund, Namibia 183536, International Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:267082. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.