Evaluating quality improvement in nonhomogeneous agricultural commodities : the case of Australian beef
Document Type
Journal article
Source Publication
Review of Marketing and Agricultural Economics
Publication Date
8-1-1996
Volume
64
Issue
2
First Page
190
Last Page
196
Publisher
Australian Agricultural and Resource Economics Society
Abstract
This paper develops conceptual and empirical frameworks for assessing the economic benefits from agricultural research which enhances the amount of a desirable characteristic in each unit of a heterogeneous commodity. The commodity is assumed to comprise two or more joint products accruable in fixed proportion. Quality improvement is perceived as an increase in the proportion of a joint product with more of a more-valued characteristic and, as such, is modelled as a shift in the supply curve of a joint product rather than via a shift in commodity demand. A proxy variable is constructed to measure an intertemporal quality change and to estimate the associated size of the supply shift. An application of the framework to the Australian beef industry indicates that the per unit amount of the characteristic 'freshness' in beef has increased over the last two decades. Substantial social benefits can be obtained by research which enhances the quality of Australian beef carcasses. A larger share of the total benefits accrue to beef producers.
Print ISSN
00346616
Publisher Statement
Copyright © 1996 Australian Agricultural and Resource Economics Society. Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Voon, J. P. (1996). Evaluating quality improvement in nonhomogeneous agricultural commodities: The case of Australian beef. Review of Marketing and Agricultural Economics, 64(2), 190-196.