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Land and Environment : Agribusiness Assoc. of Australia

Australasian Agribusiness Review - Vol. 16 - 2008

ISSN 1442-6951

Vol 16 - Paper 1 (pp. 1-25)

Potential Returns to the Australian Sheep and Wool Industries from Effective R&D and Promotion Investments and their Sensitivities to Assumed Elasticity Values

Stuart Mounter, Garry Griffith, Roley Piggott, Euan Fleming and Xueyan Zhao

Mounter et al. (2007) developed an equilibrium displacement model (EDM) of the Australian sheepmeat and wool industries. In this paper the EDM is used to estimate the potential annual returns and their distribution among the various industry sectors for nine hypothetical investment scenarios. Initially, the EDM is solved for the base set of parameter values. A formal stochastic sensitivity analysis is then undertaken to account for the uncertain parameter values in the model. The results were found to be relatively robust to different parameter values, indicating that the model as specified provides a credible framework to estimate and compare the potential impacts from new technologies, generic promotions and other industry changes in a consistent way.

Vol 16 - Paper 2

Food Retailers as Drivers of Supply Chain Integration: A Review

Jon Hanf

In recent years strictly coordinated supply chains have gained in importance in the agri-food business sector. In this context this article aims to provide a review of the state of the art of verticalisation and of supply chain management in agri-food business. Because today food retailers can be considered to be one of the most powerful actors in this sector the article also aims to provide an overview of the connection between retail developments and verticalisation. The proposition in this article is that retailers can be regarded as drivers of supply chain integration and their role in supply chain management is confirmed by recent developments in ‘new markets’ such as China, India, and Russia. 

Vol 16 - Paper 3

Land Repair Fund: a model for exploiting the nexus between land repair, improved production and profit

John E Leake and Julian B Morison

Typically, the techniques used by the best farm managers to improve productivity are correlated with actions that address land and water degradation issues, thus establishing a nexus between land repair, improved production and profit.

To address broader environmental degradation issues, there are a number of programs through which landholders can voluntarily conserve areas of ecological value on their properties. They range from non-binding, temporary agreements to binding agreements that are attached perpetually to the title of the land.

There are other ecosystem values for which incentives are being developed, for example, salinity, carbon sequestration and amenity purposes and often there is a range of these that may be applicable to a particular land area. 

This paper overviews some of the existing revolving fund schemes that have been implemented or are currently being tested in Australia, considers the payment of landholders for providing ecosystem services and then provides details on a case study of one type of revolving fund, the Land Repair Fund.

Vol 16 - Paper 4

Impact of Potential Dairy-Beef Production on China’s Beef Supply, Demand and International Trade

a  Australian Energy Market Commission, Sydney

b  School of Marketing and Management, Charles Sturt University, Orange

c  Faculty of Rural Management, University of Sydney, Orange



In the past China has been self-sufficient in beef products, but, with a dramatic increase in consumer spending on food, demand for beef, which is seen as a novel and nutritious food, has grown. By employing a partial equilibrium model and sensitivity analysis under different scenarios, this study found that an expanded dairy-beef industry would reduce the beef deficit that arises, from 2008 onwards. The additional dairy-beef production would reduce the price of beef, and reduce, although not fill, the projected gap of 50 000 tonnes per year. Without dairy-beef, China will have a significant beef shortage.

Vol 16 - Paper 5

An Economic Evaluation of Conservation Farming Practices for the Central West of NSW

Terence C. Farrell


Economic benefits that arise from conservation farming practices need to be assessed over several years to account for improvements in soil structure and nutrient levels.  A gross margin model was used to assess benefits over the eight-year period 1999-2006 for 12 regions in the central west of NSW.  The benefits from improved soil structure ranged from $39.85 to $114.26 per hectare (ha).  A reduction in tractor power produced savings in the range of $6.74 to $40.98 per ha. The average net benefit of the adoption of conservation farming practices was $218 per ha over the eight years. The break-even time to pay back costs for the conversion of machinery for no-till seeding and purchasing a GPS guidance system was two to three seasons.

Vol 16 - Paper 6

Product and process innovation in the food processing industry: case study in Guangxi province

Xin Ma and Peter McSweeney

China's food processing sector has arrived at a critical stage and the challenges for the food industry including undergoing relevant structural adjustments are well documented (OECD 2000).  The Chinese domestic economy continues to boom and living standards of people continue to improve.  Food processors need to adjust to increasingly diversified consumer demands and improve the quality and nutritional content of foods.  The food industry also needs to enhance its international market access through product quality, variety, safety and other attributes of their food products.  Product and process innovation has become one of the top driving forces for improving the competitiveness of China’s food processing industry both domestically and internationally (OECD 2000).

This paper examines through case study analysis the response of several food processors in China to the changes in their external business environment and makes some assessment of their adoption or otherwise of innovative strategies.  While relevant studies have been pervasive in Western countries, there is a dearth of analysis of such issues in China.


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