Deregulation of the domestic market for wheat for stockfeed: the size and distribution of surplus gains accruing to the Australian pig industry
1989
Cashin, P.A. (Victorian Dept. of Agriculture and Rural Affairs (Australia). Policy Development Branch)
An equilibrium displacement model was developed for the Australian pig industry and used to show that a 10 percent fall in the price of wheat for stockfeed results in: a 1.9 percent increase in the quantity of pigmeats produced; a 1.27 percent fall in the farm-level price of pigmeats; a 9.52 percent fall in the price of wheat for stockfeed; a 0.43 percent fall in the price of non-wheat stockfeeds; a 2.96 percent rise in the price of non-feed inputs; a 9.63 percent increase in the consumption of wheat for stockfeed; a 2.15 percent fall in the consumption of non-wheat stockfeeds; and a 1.48 percent increase in the consumption of non-feed inputs. Alternative results are also presented to examine the sensitivity of the results to varying the assumptions made.
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