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Livestock Production Policies And Meat Processing Margins: The Case Of New Zealand, 1967-1988

Author

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  • Griffith, Garry R.
  • Moore, Walter B.

Abstract

The New Zealand export meat industry has been through a considerable number of changes in the 1980s. The deregulation of export slaughter facilities, Supplementary Minimum Prices, Producer Board intervention, declining livestock numbers and domestic cost pressures have all affected the performance of the domestically based processing sector. Major changes in market access and demand have influenced off-shore marketing operations, particularly for sheepmeats. Additionally, there has been a change in the type of meat exported with a greater proportion of further processed product shipped in recent years. As an example of the impact of these developments on livestock producers, the producer share of the United Kingdom wholesale market return for a representative prime lamb carcase has fallen from 40 per cent in 1978 to 25 per cent in 1988. In this article the pattern of intervention in the New Zealand pastoral meat industries from the mid-1960s is detailed, emphasising the different environments of the beef and sheepmeat enterprises. Then the principal factors influencing domestic processing margins for these products are empirically examined. Alternative model specifications and alternative estimation techniques are compared and contrasted. The results of these analyses are discussed in terms of the historical patterns of assistance and structural change, and in terms of current rationalisation pressures on the meat processing sector.

Suggested Citation

  • Griffith, Garry R. & Moore, Walter B., 1991. "Livestock Production Policies And Meat Processing Margins: The Case Of New Zealand, 1967-1988," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(01), April.
  • Handle: RePEc:ags:ajaeau:22928
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    References listed on IDEAS

    as
    1. Griffith, Garry R. & Moore, Walter B., 1990. "Processing and Marketing Margins for Lamb, Mutton and Beef in New Zealand," 1990 Conference (34th), February 13-15, 1990, Brisbane, Australia 145124, Australian Agricultural and Resource Economics Society.
    2. B. Wade Brorsen & Jean-Paul Chavas & Warren R. Grant, 1987. "A Market Equilibrium Analysis of the Impact of Risk on the U.S. Rice Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(4), pages 733-739.
    3. B. S. Fisher, 1981. "The Impact of Changing Marketing Margins on Farm Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 261-263.
    4. Hall, Lana & Schmitz, Andrew & Cothern, James, 1979. "Beef Wholesale-Retail Marketing Margins and Concentration," Economica, London School of Economics and Political Science, vol. 46(183), pages 295-300, August.
    5. Wohlgenant, Michael K. & Mullen, John D., 1987. "Modeling The Farm-Retail Price Spread For Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(02), December.
    6. Grant, W. R. & Richardson, J. W. & Brorsen, B. Wade & Rister, M. E., 1984. "Economic Impacts of Increased Price Variability: A Case Study with Rice," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 4.
    7. Mullen, John D. & Alston, Julian M. & Wohlgenant, Michael K., 1989. "The Impact Of Farm And Processing Research On The Australian Wool Industry," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(01), April.
    8. Naughtin, John C. & Quilkey, John J., 1979. "Pricing Efficiency In The Retail Meat Market," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(01), April.
    9. B. Wade Brorsen & Jean-Paul Chavas & Warren R. Grant & L. D. Schnake, 1985. "Marketing Margins and Price Uncertainty: The Case of the U.S. Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 521-528.
    10. Ted C. Schroeder, 1988. "Price linkages between wholesale and retail pork cuts," Agribusiness, John Wiley & Sons, Ltd., vol. 4(4), pages 359-369.
    11. Griffith, Garry R. & Duff, G.L., 1989. "The Influence of Short-Run Price Variability on Sydney Pork Price Spreads: A Preliminary Analysis," 1989 Conference (33rd), February 7-9, 1989, Christchurch, New Zealand 144726, Australian Agricultural and Resource Economics Society.
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