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Profitability Of Incremental Expenditure On Fibre Promotion

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  • Hill, Debbie J.
  • Piggott, Roley R.
  • Griffith, Garry R.

Abstract

In this paper the impact of changes in wool promotion expenditure and changes in expenditure on the promotion of competing fibres are examined using an equilibrium displacement model. The emphasis is on examining impacts on producer profits net of promotion expenditure and on benefit-cost ratios measuring changes in producer surplus relative to changes in promotion expenditure. It was found, for example, that incremental expenditure on apparel wool promotion on the domestic market is unprofitable but incremental expenditure on promotion of apparel wool on the export market is generally profitable. Further, it was found that increased promotion of cotton and man-made fibres on the export market, with promotion of apparel wool unchanged, would reduce profits to apparel wool producers. Finally, a case is made for improved data availability in order to allow more comprehensive ex-ante and ex-post evaluations of promotion programs, thereby increasing the intensity of scrutiny of promotion programs to a level more in line with that for investment in rural research and development.

Suggested Citation

  • Hill, Debbie J. & Piggott, Roley R. & Griffith, Garry R., 1996. "Profitability Of Incremental Expenditure On Fibre Promotion," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(3), pages 1-24, December.
    • Handle: RePEc:ags:ajaeau:22370
    DOI: 10.22004/ag.econ.22370
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    References listed on IDEAS

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    Cited by:

    1. Zhao, Xueyan & Mullen, John D. & Griffith, Garry R., 2005. "Economic Surplus Measurement in Multi-Market Models," Working Papers 12910, University of New England, School of Economics.
    2. Hoque, Ziaul & Farquharson, Robert J. & Taylor, Ian & Walker, Steve & Osten, Vikki & Jones, Randall E., 2003. "The economic cost of weeds in dryland cotton production systems of Australia," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57893, Australian Agricultural and Resource Economics Society.
    3. Hill, D. J. & Piggott, R. R. & Griffith, G. R., 2001. "Profitability of incremental generic promotion of Australian dairy products," Agricultural Economics, Blackwell, vol. 26(3), pages 253-266, December.
    4. David T. Vere & Randall E. Jones & Garry R. Griffith, 2003. "Economic benefits of public investment in weed management: the case of vulpia in south‐eastern Australia's temperate pasture areas," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 519-539, December.
    5. Zhao, Xueyan & Mullen, John D. & Griffith, Garry R. & Griffiths, William E. & Piggott, Roley R., 2000. "An Equilibrium Displacement Model of the Australian Beef Industry," Research Reports 28007, New South Wales Department of Primary Industries Research Economists.
    6. Brennan, John P. & Singh, Rajinder Pal & Singh, Inder Pal, 1999. "Economic Issues in Assessing Research Priorities in Feed Grains Nutrition," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123789, Australian Agricultural and Resource Economics Society.
    7. Vere, David T. & Jones, Randall E. & Dowling, Peter, 2004. "An Economic Evaluation of Research into the Improved Management of the Annual Grass Weed Vulpia in Temperate Pastures in South-Eastern Australia," Research Reports 42503, New South Wales Department of Primary Industries Research Economists.
    8. Brennan, John P. & Singh, Rajinder Pal, 2000. "Economic Assessment of Improving Nutritional Characteristics of Feed Grains," Research Reports 28000, New South Wales Department of Primary Industries Research Economists.
    9. Vere, D. T. & Jones, R. E. & Saunders, Glen, 2004. "The economic benefits of rabbit control in Australian temperate pastures by the introduction of rabbit haemorrhagic disease," Agricultural Economics, Blackwell, vol. 30(2), pages 143-155, March.
    10. Dent, Siobahn K. & Piggott, Roley R. & O'Donnell, Christopher J. & Griffith, Garry R., 2003. "Does Excluding Cross-commodity Interactions Matter? Beef and Lamb in Australia," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57859, Australian Agricultural and Resource Economics Society.
    11. Hill, Debbie J. & Piggott, Roley R. & Griffith, Garry R., 1999. "Profitability Of Incremental Generic Promotion Expenditure By Australian Dairy Farmers," Working Papers 12913, University of New England, School of Economics.

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