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Strategic Alliances and Marketing Cooperatives: A Lamb Industry Case Study

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  • Farrell, T. C.
  • Tozer, P. R.

Abstract

Producer cooperatives and strategic alliances could assist lamb producers and market efficiency by improving price signals through product grading. Opportunities exist for first and second cross lamb producers to achieve price premiums by forming intersectoral linkages with processors/wholesalers and retailers. Producer cooperatives enabler produces to supply consistent quantities of high quality lambs to satisfy the market requirements of the wholesaler/retailers within the alliance. Alternatively, opportunistic lamb suppliers who are constrained by environmental or cost factors may not be able to derive similar price premiums. Market analysis reveals that there are barriers to entry into specific market segments for some producers, who participate in the market individually or as a group. Hence, strategic alliances between producers and higher level market participants can yield price premiums beyond those achievable in a short-run freely competitive market.

Suggested Citation

  • Farrell, T. C. & Tozer, P. R., 1996. "Strategic Alliances and Marketing Cooperatives: A Lamb Industry Case Study," 1996 Conference (40th), February 11-16, 1996, Melbourne, Australia 149980, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare96:149980
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    References listed on IDEAS

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    1. Martin, William J. & Porter, Darrell, 1985. "Testing For Changes In The Structure Of The Demand For Meat In Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 1), pages 1-16, April.
    2. Murray, Jane, 1984. "Retail Demand for Meat in Australia: A Utility Theory Approach," The Economic Record, The Economic Society of Australia, vol. 60(168), pages 45-56, March.
    3. Freebairn, John W., 1967. "Grading as a Market Innovation," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 03), pages 1-16, September.
    4. Mullen, John D., 1995. "The Influence of Fat and Weight on the Price of Lamb in the Homebush Livestock and Wholesale Markets," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 01), pages 1-13, April.
    5. R.G. Reynolds & B. Gardiner, 1980. "Supply Response In The Australian Sheep Industry: A Case For Disaggregation And Dynamics," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(3), pages 196-209, December.
    6. Peter J. Barry & Sonka Steven T. & Kaouthar Lajili, 1992. "Vertical Coordination, Financial Structure, and the Changing Theory of the Firm," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1219-1225.
    7. Reynolds, R.G. & Gardiner, B., 1980. "Supply Response In The Australian Sheep Industry: A Case For Disaggregation And Dynamics," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 3), pages 1-14, December.
    8. Read, Mike & Malcolm, Bill, 1994. "The Changing Victorian Meat Processing Industry," 1994 Conference (38th), February 8-10, 1994, Wellington, New Zealand 148673, Australian Agricultural and Resource Economics Society.
    9. Quilkey, John J., 1986. "Promotion Of Primary Products - A View From The Cloister," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 1), pages 1-15, April.
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    Cited by:

    1. Johnson, R.W.M. & Petrey, L.A. & Schroder, William R., 1996. "Agribusiness: Political Economy and Market Structure - Toward a Structure for Agribusiness," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 02), pages 1-6, August.
    2. Catherine Morrison Paul, 2003. "Productivity and Efficiency Measurement in Our “New Economy”: Determinants, Interactions, and Policy Relevance," Journal of Productivity Analysis, Springer, vol. 19(2), pages 161-177, April.

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