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Dairy disaggregation and joint production in an economy-wide model *-super-‡


  • Angus Charteris
  • Niven Winchester


We examine the impact of dairy disaggregation and joint production on trade liberalisation outcomes in an economy-wide model. Depending on parameterisation, our model includes either (i) a single dairy commodity, (ii) several dairy commodities without joint production or (iii) several dairy commodities with joint production. In a numerical application, we consider the removal of US tariffs on dairy exports from New Zealand (the world's largest dairy exporter). We show that failing to account for joint production when dairy commodities are disaggregated leads to misleading results. Our preferred dairy production function differs from those used in other applied trade models. Our analysis can be used to determine when accounting for joint production in other sectors is important. Copyright 2010 The Authors. AJARE 2010 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd.

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  • Angus Charteris & Niven Winchester, 2010. "Dairy disaggregation and joint production in an economy-wide model *-super-‡," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 491-507, October.
  • Handle: RePEc:bla:ajarec:v:54:y:2010:i:4:p:491-507

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    References listed on IDEAS

    1. Julian M. Alston & Joseph V. Balagtas & Henrich Brunke & Daniel A. Sumner, 2006. "Supply and demand for commodity components: implications of free trade versus the AUSFTA for the US dairy industry ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), pages 131-152, June.
    2. Thaeripour, Farzad & Hertel, Thomas W. & Tyner, Wallace E. & Beckman, Jayson F. & Birur, Dileep K., 2008. "Biofuels and their By-Products: Global Economic and Environmental Implications," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6452, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    4. Kym Anderson & Dominique van der Mensbrugghe, 2007. "Effects of multilateral and preferential trade policy reform in Africa: The case of Uganda," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 16(4), pages 529-550.
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    6. Niven Winchester, 2006. "Liberating middle earth: How will changes in the global trading system affect New Zealand?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 40(1), pages 45-79.
    7. Zohra Bouamra-Mechemache & Jean-Paul Chavas & Thomas L. Cox & Vincent Réquillart, 2002. "Partial Market Liberalization and the Efficiency of Policy Reform: The Case of the European Dairy Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1003-1020.
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    9. Robinson, Sherman & Thierfelder, Karen, 2002. "Trade liberalisation and regional integration: the search for large numbers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(4), December.
    10. Allan Rae & Anna Strutt, 2004. "Multilateral agricultural trade reform: Potential impacts of current negotiations on New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 38(2), pages 175-205.
    11. Joseph Francis Francois & Ganeshan Wignaraja, 2008. "Economic Implications of Deeper Asian Integration," Economics working papers 2008-13, Department of Economics, Johannes Kepler University Linz, Austria.
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    13. Robert Scollay & John Gilbert, 2000. "Measuring the Gains from APEC Trade Liberalisation: An Overview of CGE Assessments," The World Economy, Wiley Blackwell, vol. 23(2), pages 175-197, February.
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    Cited by:

    1. Owen, P. Dorian & Winchester, Niven, 2014. "The impact of US fresh milk production standards on dairy trade," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 1008-1021.
    2. repec:eee:enepol:v:110:y:2017:i:c:p:644-652 is not listed on IDEAS

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