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Examining AWB’s market power in the international wheat market

Author

Listed:
  • Chang, Hui-Shung (Christie)
  • Martel, William
  • Berry, Robert

Abstract

The Australian wheat marketing system has been through a number of stages of deregulation in recent years. However, the AWB still maintains the monopoly selling rights of Australian wheat exports. The AWB and its supporters justify the single desk by arguing that the monopoly power enables them to gain a higher price in the export markets. Opposition to the single desk argues that Australia does not produce enough wheat to influence prices. The objective of this study is to test the market power hypothesis by examining the quantity - price relationship of Australian wheat exports and the stability of this relationship over time using annual data from 1961 to 2000.

Suggested Citation

  • Chang, Hui-Shung (Christie) & Martel, William & Berry, Robert, 2003. "Examining AWB’s market power in the international wheat market," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57843, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare03:57843
    DOI: 10.22004/ag.econ.57843
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    File URL: https://ageconsearch.umn.edu/record/57843/files/2003_chang2.pdf
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    References listed on IDEAS

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    1. Colin A. Carter & William W. Wilson, 1997. "Emerging differences in state grain trading: Australia and Canada," Agricultural Economics, International Association of Agricultural Economists, vol. 16(2), pages 87-98, May.
    2. Gregory William DeVos, 1997. "The Elimination of the Canadian and Australian Wheat Boards: A Move from Triopoly to Perfect Competition in the World Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1742-1748.
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    Cited by:

    1. O'Keeffe, Patrick, 2014. "The Impact of Wheat Export Market Deregulation upon Wheat Growers in Victoria’s Western Wimmera," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165868, Australian Agricultural and Resource Economics Society.

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