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The Cost to the Bali Beef Industry of the October 2002 Terrorist Attack

Author

Listed:
  • Ambarawati, I Gusti Agung Ayu
  • Zhao, Xueyan
  • Griffith, Garry R.
  • Piggott, Roley R.

Abstract

The island of Bali is one of the main cattle producing areas for Indonesia. Bali is also known for its extensive tourist sector. Frozen and chilled beef are imported to fulfil the tourist demand. This imported beef, most of it from Australia, competes with the local beef in the tourist sector. The terrorist attack in October 2002 caused the tourist industry to collapse and this impact has been passed down to the demand for local and imported beef. The objective of this paper is to use an economic model of the Bali beef industry to assess the impact of this attack on the Bali beef sector. The results show that there is expected to be a significant welfare loss of Rp 5.43 billion (A$ 1.09 million) to the Bali beef industry over the medium term. Of this, Bali cattle producers are expected to lose Rp 2.57 billion (47 per cent). The quantity of Bali beef demanded by the HRI markets is forecast to drop by about 5 per cent, while imported beef demand is forecast to reduce by about 2 per cent.

Suggested Citation

  • Ambarawati, I Gusti Agung Ayu & Zhao, Xueyan & Griffith, Garry R. & Piggott, Roley R., 2004. "The Cost to the Bali Beef Industry of the October 2002 Terrorist Attack," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 12.
  • Handle: RePEc:ags:auagre:132083
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    File URL: http://purl.umn.edu/132083
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    References listed on IDEAS

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    1. Roley R. Piggott, 1992. "Some Old Truths Revisited," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 36(2), pages 117-140, August.
    2. Piggott, Roley R., 1992. "Some Old Truths Revisited," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 147251, Australian Agricultural and Resource Economics Society.
    3. Hadi, Prajogo U. & Ilham, N. & Thahar, A. & Winarso, B. & Vincent, David P. & Quirke, Derek, 2002. "Improving Indonesia┘│ Beef Industry," Monographs, Australian Centre for International Agricultural Research, number 114076.
    4. 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.
    5. Piggott, Roley R., 1992. "Some Old Truths Revisited," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(02), August.
    6. Ambarawati, I Gusti Agung Ayu & Zhao, Xueyan & Griffith, Garry R. & Piggott, Roley R., 2003. "Distribution of Gains from Cattle Development in a Multi-Stage Production System: The Case of the Bali Beef Industry," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57829, Australian Agricultural and Resource Economics Society.
    7. Ambarawati, I Gusti Agung Ayu & Griffith, Garry R. & Chang, Hui-Shung (Christie), 2002. "Assessment of beef cattle development schemes on farm performance in Bali," 2002 Conference (46th), February 13-15, 2002, Canberra 125052, Australian Agricultural and Resource Economics Society.
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