Advanced Search
MyIDEAS: Login

The Payoff from Generic Advertising by the Australian Pig Industry in the Presence of Trade

Contents:

Author Info

  • Mounter, Stuart W.
  • Griffith, Garry R.
  • Piggott, Roley R.
Registered author(s):

    Abstract

    The Australian pig meat industry today competes in a global market environment, with significant quantities of both pork exports and pork imports for further processing. In March 2003 Australian Pork Limited (APL) launched a advertising campaign to raise domestic per capita consumption of pork, and increase consumer awareness and preference for identified Australian pig meat. This is funded from producer levies. Over the period 2003 to 2005, APL advertising expenditure is forecast to be at least 15 per cent above 2001-02 domestic advertising expenditure levels. Domestic advertising expenditure by APL for the 2002-03 financial year was actually 30 per cent above the previous year’s level. The question is whether these pig producer funds are being well spent. Evaluation of pig meat advertising expenditure has been undertaken in the past, but not in the context of a trading industry. An equilibrium displacement model of the Australian pig meat industry accounting for imports and exports was specified to study the returns to producers from different advertising scenarios. Total returns in terms of producer surplus gains were estimated for each scenario. The results indicated that producers receive the largest returns from domestic bacon/ham advertising and the least from export pork advertising. Producer surplus changes associated with a 30 per cent increase in domestic pork advertising expenditure were calculated for three different trade scenarios, including a hypothetical no-trade scenario. Returns to producers were shown to be very sensitive to the value chosen for the elasticity of demand response to advertising, but were unlikely to be positive based on past estimates of the relevant parameter values. Returns to producers were also dependent on assumptions made about the trade status of the industry and the way in which the advertising was funded.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://purl.umn.edu/126316
    Download Restriction: no

    Bibliographic Info

    Article provided by University of Melbourne, Melbourne School of Land and Environment in its journal Australasian Agribusiness Review.

    Volume (Year): 13 (2005)
    Issue (Month): ()
    Pages:

    as in new window
    Handle: RePEc:ags:auagre:126316

    Contact details of provider:
    Web page: http://www.agrifood.info/review/

    Related research

    Keywords: Australian pig meat industry; pig meat; consumer awareness; consumption; Australian Pork Limited; advertising campaign; trade; Agribusiness; Consumer/Household Economics; Demand and Price Analysis; Farm Management; Food Consumption/Nutrition/Food Safety; International Relations/Trade; Livestock Production/Industries; Marketing; ISSN 1442-6951;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Zhang, Lin & Goddard, Ellen W., 1999. "Revisiting Australian Pork Sales Response to Advertising 1985 - 1997," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 125044, Australian Agricultural and Resource Economics Society.
    2. Zhao, Xueyan & Anderson, Kym & Wittwer, Glyn, 2003. "Who gains from Australian generic wine promotion and R&D?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), June.
    3. Mingxia Zhang & Richard J. Sexton, 2002. "Optimal Commodity Promotion when Downstream Markets are Imperfectly Competitive," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 352-365.
    4. Zhao, Xueyan & Griffiths, William E. & Griffith, Garry R. & Mullen, John D., 2000. "Probability distributions for economic surplus changes: the case of technical change in the Australian wool industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(1), March.
    5. Nicholas E. Piggott & James A. Chalfant & Julian M. Alston & Garry R. Griffith, 1996. "Demand Response to Advertising in the Australian Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 268-279.
    6. Scobie, Grant M. & Johnson, Paul R., 1979. "The Price Elasticity Of Demand For Exports: A Comment On Throsby And Rutledge," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(01), April.
    7. Zhao, Xueyan & Griffith, Garry R. & Mullen, John D., 2000. "Returns to New Technologies in the Australian Beef Industry: On-farm Research versus Off-farm Research," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123749, Australian Agricultural and Resource Economics Society.
    8. 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.
    9. Zhao, Xueyan & Mullen, John D. & Griffith, Garry R., 2001. "Some Practical Issues in Economic Surplus Measurement in Multi-Market Models," 2001 Conference (45th), January 23-25, 2001, Adelaide 126067, Australian Agricultural and Resource Economics Society.
    Full references (including those not matched with items on IDEAS)

    Citations

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

    Cited by:
    1. Vere, David T. & Griffith, Garry R. & Silvester, Luke T., 2005. "Australian Sheep Industry CRC: Economic Evaluations of Scientific Research Programs," Research Reports 42651, New South Wales Department of Primary Industries Research Economists.
    2. Slattery, Henry & Griffith, Garry R. & Malcolm, Bill & Dunshea, Frank, 2010. "The benefits to the Australian Pig meat industry from an increase in demand for a hypothetical low cholesterol pork product," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 18.
    3. Mounter, Stuart W. & Griffith, Garry R. & Piggott, Roley R. & Mullen, John D., 2005. "The Payoff from Generic Advertising by the Australian Pig Industry: Further Results Relative to the Payoff from R&D," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 13.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ags:auagre:126316. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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