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Issues in Modelling the Australian Dairy Industry: Joint Products, Market Power and Deregulation

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  • MacAulay, T. Gordon
  • Owen, Kate M.
  • O'Donnell, Christopher J.

Abstract

This paper reports on an expanded and revised version of the spatial equilibrium model of the Australian dairy industry developed by MacAulay (1997). In the expanded version there is demand for five manufactured products. The transformation from bulk milk to final product is modelled by considering milk and dairy products in terms of their primary components, milk fat and protein. For market milk, a variable element was added to the margin to replicate the effects of market power in the processor to retail chain. Some implications for the deregulation of the Australian dairy industry are noted.

Suggested Citation

  • MacAulay, T. Gordon & Owen, Kate M. & O'Donnell, Christopher J., 1999. "Issues in Modelling the Australian Dairy Industry: Joint Products, Market Power and Deregulation," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123833, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare99:123833
    DOI: 10.22004/ag.econ.123833
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    References listed on IDEAS

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    1. Garth J. Holloway, 1991. "The Farm-Retail Price Spread in an Imperfectly Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 979-989.
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    Cited by:

    1. MacAulay, T. Gordon, 2000. "Competition Policy in Agriculture: A Review of Methods," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123697, Australian Agricultural and Resource Economics Society.

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