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An Ex Ante Evaluation of the National Pig Carcase Measurement and Information Service

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  • Griffith, Garry R.
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    Abstract

    This paper reports an ex ante evaluation of a proposed carcase description scheme for the Australian pig industry. Potential benefits and costs of the scheme are described and enumerated, and most likely estimates evaluated by benefit-cost analysis. The results indicate that the proposed scheme would generate net discounted efficiency benefits of almost $50m. A sensitivity analysis of important assumptions and parameter values is conducted, and in all cases NPV remains positive. The conclusion is that the ex ante pricing and operational efficiency benefits of the implementation of the scheme would outweigh the costs of achieving them.

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    File URL: http://purl.umn.edu/10305
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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

    Volume (Year): 46 (1978)
    Issue (Month): 03 (December)
    Pages:

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    Handle: RePEc:ags:remaae:10305

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    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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    Keywords: Livestock Production/Industries;

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    1. Scobie, Grant M. & Franklin, David L., 1977. "The Impact Of Supervised Credit Programmes On Technological Change In Developing Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(01), April.
    2. Freebairn, John W., 1973. "The Value Of Information Provided By A Uniform Grading System," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 17(02), August.
    3. Hayami, Yujiro & Peterson, Willis, 1972. "Social Returns to Public Information Services: Statistical Reporting of U. S. Farm Commodities," American Economic Review, American Economic Association, vol. 62(1), pages 119-30, March.
    4. Kihlstrom, Richard E, 1974. "A Bayesian Model of Demand for Information About Product Quality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 15(1), pages 99-118, February.
    5. Freebairn, J W, 1976. "The Value and Distribution of the Benefits of Commodity Price Outlook Information," The Economic Record, The Economic Society of Australia, vol. 52(138), pages 199-212, June.
    6. Griffith, Garry R. & Giles, L.R., 1977. "Pig Carcase Pricing Models: A Preliminary Investigation," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 45(04), December.
    7. Kihlstrom, Richard, 1974. "A general theory of demand for information about product quality," Journal of Economic Theory, Elsevier, vol. 8(4), pages 413-439, August.
    8. Hirshleifer, Jack, 1973. "Where Are We in the Theory of Information?," American Economic Review, American Economic Association, vol. 63(2), pages 31-39, May.
    9. McCall, John J, 1970. "Economics of Information and Job Search," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 84(1), pages 113-26, February.
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    Cited by:
    1. Mullen, John D., 1982. "Evaluating a Pig Carcase Classification Service Using Willingness to Pay Techniques," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 50(02), August.

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