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.
ABS. (2010). Agricultural commodities, Australia. Australian Bureau of Statistics. Canberra. ABARES. (2006). Agricultural commodities. AAP General News Wire.
Gans, J. (2011). Principles of economics. South Melbourne, Vic: Cengage Learning.
Griffith, G. et al. (2001). The US catlle cycle and its influence on the Australian beef
industry. Retrieved 7th August 2013 from http://www.livestocklibrary.com.au/bitstream/handle/document/pdf
Hassall & Associates Australia . (2006). The Live Export Industry: Value, Outlook and
Contribution to the Economy, Melbourne.
Kidane, H. (2003). Australian meat industry: Challenging issues and prospects on world export
markets. Journal of Food Products Marketing, 9(2), 69-89.
Kimbal, C. (2012). Western Australian Beef Commentary. Department of Agriculture and Food,
Norton, M. (2005). Factors affecting beef and cattle producer prices movements. Monthly Labor
Review, 128(5), 32-40.
Niethe, G. and Quirk, M. (2008). A scoping study an potential beef production from the northern
rangelands of Western Australia in relation to the supply chain. A report to the Department of Agriculture and Food, Western Australia, October.
O’Loughlin, E. (2008). Issues in the Western Australian Beef industry, (2) Summary f reports on
the Beef Industry in Western Australia 1995-2006. Department of Agriculture and Food, Western Australia.
Schroeder, C., Marsh, L. & Mintert, J. (2000). Beef demand determinants: A research summary.
Retrieved 7th August 2013 from http://www.agmanager.info/livestock/marketing/document/pdf
Vansickle, J. (1999). New factors affecting cattle prices. Retrieved 7th August 2013 from