Essays on Australian Beef Industry Case Study

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The paper "Australian Beef Industry" is a perfect example of a macro & microeconomics case study.   The Australian market is structured largely as a product exporter economy; though over the recent years this has taken another direction towards a knowledge-based economy. ABARES, (2006) claims that in the previous 15 years, this economy has changed from largely an agricultural-based economy to a balanced economy. In 2003 agricultural exports contributed A$30.6 billion to the country's economy (ABS, 2010). This number clearly demonstrates that Australia agricultural industry is emerging as a key player in the international market, exporting refined manufacturing commodities. Beef production is one of the major contributors to the economy of Australia which has put the country in the world map.

The sector is now competing with industry-leading players such as Brazil, the US, and the European (Union Hassall & Associates Australia 2006). Although the sector may be doing well at the present in terms of the world ranking, it has never escaped challenges. To put this discussion into perspective, the main concern of this essay is to analyze the Australian beef domestically and export market, assess the commodity characteristics, demand and supply elasticities, and market interdependence.

To contextualize the discussion the essay will also assess how institutional policies in the domestic and international affect beef trade. The beef sector is the leading agricultural business in Australia, and considered the second major beef exporter, after Brazil all the world (ABARES, 2006). All conditions and geographical factors of Australia encourage cattle rearing in a wide number of climates. Cattle production regarded as a key sector that covers an area estimated to be 200 million hectares (ABS, 2010).

In the last five years, beef prices have gradually decreased. Similarly, the lasting impacts of drought cases, that have raised the cost of rearing cattle and beef processing, have squeezed sector profit considerably. Favorable weather that returned in late 2010 meant a start of good times for the sector; however, revenue remained under strain as farmers concentrated on building herds. In the years through to 2013/14, sector profits are predicted to decline by an annualized 3.3 percent to attain $5.6 billion.

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