Advanced Search
MyIDEAS: Login to save this article or follow this journal

Industry Structure and the Reform of the Queensland Sugar Industry: A Computational Model


Author Info

  • Beard, Rodney

    (University of Queensland, Brisbane)

  • Wegener, Malcolm

    (University of Queensland, Brisbane)


A computational model of pricing and profitability in the Queensland sugar industry is applied to a comparative analysis of likely alternative industry structures that may arise in the wake of industry reform. Implementation of proposals suggested by the sugar industry review working party and in some of the submissions to it are also examined. The model is a simple static optimisation model of the trade in sugarcane in a local mill area. Numerical results are presented to compare prices and profitability for both a representative mill and growers in a monopsony situation, a contestable market, and under the current institutional arrangement. The results indicate that although deregulation has the potential to lead to improved welfare for both growers and the mills, this will only be the case if mills price competitively, i.e. in the contestable market case where the threat of competition from neighbouring and competing mills is sufficient to force the incumbent mill to pay for cane at a competitive price to prevent the entry of potential competitors.

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:
Download Restriction: no

Bibliographic Info

Article provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).

Volume (Year): 31 (2001)
Issue (Month): 2 (September)
Pages: 125-137

as in new window
Handle: RePEc:eap:articl:v:31:y:2001:i:2:p:125-137

Contact details of provider:
Postal: GPO Box 2434, BRISBANE QLD 4001
Web page:
More information through EDIRC

Related research

Keywords: Pricing; Sugar; Sugarcane;

Find related papers by JEL classification:


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. Joseph Farrell & Matthew Rabin, 1996. "Cheap Talk," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 103-118, Summer.
Full references (including those not matched with items on IDEAS)


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

Cited by:
  1. Beard, Rodney, 2007. "Rent seeking, interest groups and environmental lobbying: Cane Farmers versus Great Barrier Reef Protectionists," MPRA Paper 5351, University Library of Munich, Germany.


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


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:eap:articl:v:31:y:2001:i:2:p:125-137. 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: (Manuela Torgler).

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.