• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Farm Economics - Feedlot Industry.

Extracts from this document...

Introduction

FARM BUSINESS MANAGEMENT 1 - 2002 FARM ECONOMICS-TERM 1 FEEDLOT INDUSTRY LECTURER: CAMPBELL JEFFREY STUDENT NUMBER: 1407 DUE DATE: MARCH 22, 2002 Table of Contents SUPPLY AND DEMAND PATTERNS 1 DEMAND FORCES 1 Factors affecting demand by Japan in the last 10 years 2 FACTORS AFFECTING SUPPLY 4 RESPECTIVE ELASTICITY MEASURES 5 PRICE MOVEMENTS 6 REFERENCES 7 ACKNOWLEDGEMENTS 7 Prior to the 1990s, feedlots were used either to combat drought or opportunistically by producers, gaining an advantage when the grain prices were low. In the last ten years the Japanese beef market has been liberalised subsequently there has been an increase in demand for imported grainfed beef. Resulting in a huge growth of the feedlot sector within Australia. Cattle numbers in these feed lots has risen from 80 000 in 1985 to 640 000 in 2001. Also there is currently 850 feed lots accredited by the 'National Feedlot Accreditation Scheme', combined to form a total capacity of 850 000 (MLA March 21 2002). Supply and Demand Patterns Australia is the largest exporter of beef in the world. if you take into account feedlot meat and live export, 65% of total production is exported (MLA March 21 2002), Total numbers on feed reflect the supply and demand forces. ...read more.

Middle

Food safety is a big issue and food pathogens were highly publicized as a cause of several food poisoning outbreaks. These pathogens found in salad products caused beef demand to decline. (Nichols) From 1997 on the Australian dollar continued to weaken. Consequently MLA marketing vigor in Japan increased. The result was increasing demand as the Japanese recognised consistent quality and good price due to favorable trading terms because of the weak A$. Numbers on feed continue to increase until the end of 2001 despite diagnosis of BSE in a Japanese dairy and a subsequent confirmation in a second animal. Number of cattle on feed dropped 14 percent in the three months from the end of September to the end of December last year (MLA). The BSE crisis in Japan has been blamed for this. Cattle on feed for the December quarter (traditionally the time of their highest levels) were 637,410 head, and turnoff was about 497,000 head, 17 percent less than during the September quarter (Mathers). Total beef consumption in Japan has reduced dramatically with the Australian exports down 15% in late 2001. ...read more.

Conclusion

The USDA is now forecasting beef supplies to "fall by 2.6% to 25.5 billion pounds for 2002." Declining US beef availability and higher prices should ease competition to Australian beef in Asian markets therefore increasing the price. Price Movements In 1993/94 the Australian cattle herd of 25.8 million head was similar to the 25.2 million head of 1980/81. However, due to advances in beef feedlot technology beef production was 24 per cent higher than 1980/81. Thus the cattle industry has greatly improved Australia's international export growth to $2.2 billion or 200 per cent in export earnings from beef over this 13 year period (from $1.1 billion in 1980/81 to $3.3 billion in 1993/94). This export growth accelerated in the early 1990s due to the industry's successful penetration of Asian markets. With growth of $1.5 billion or 90 per cent in beef export earnings over the 5 years to 1993/94 and $145 million or 240 per cent in live cattle export earnings over the 4 years to 1994/95. (Mathers) Export growth has only been made possible by a more customer or end-user focus, more targeting of production to better meet customer needs and better communication and integration with the other stages of the beef production chain. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. Unit 2 Investigating business

    There are various different methods to use when checking quality. There is the traditional method which involved checking the quality at the end of the chain of production, it is left to one person whose job is to thoroughly check the product.

  2. Marketing Research

    MDS seeks to measure this distance to determine the approximate position of each brand in the consumer's mind. This graph of brand position is termed as perceptual map. It may be two dimensional, three dimensional or even more. The dimensions are the attributes over which the brands have been evaluated.

  1. Applied Business Studies

    certain things, and without them, we would not have anyone pushing us forward to do things. Suppliers The suppliers are different to certain people, but they are doing the same job. For a supermarket company for example, the suppliers for them are the people who deliver the products to their

  2. Applied Business Unit 2 Coursework

    The first job description I analysed had no evidence of the duties or responsibilities in the big paragraph which is evidence of a poor job description because it is not informing the candidate of what the job involves and what they are expected to do making the job role unclear.

  1. GLOBAL STEEL INDUSTRY DEVELOPMENT

    The growth in the steel sector in the early decades after Independence was mainly in the public sector units set up during this period. The situation has changed dramatically in the decade 1990-2000 with most of the growth originating in the private sector.

  2. Business Enterprise unit 5

    In addition opening a corner shop next to council estate will also bring in a lot of profits. In addition I do not need to have any particular type of qualification; however some knowledge on financial data analysis will be beneficial as I can work out my profits and losses.

  1. Price Elasticity of Demand.

    For a demand curve that is a straight line, the slope is constant. Therefore the slope does not change as it moves along the demand curve. However, for the same demand curve, price elasticity varies depending upon the range of the demand curve in question.

  2. This is a report on the international dimension of Costa Coffee and Coffee Aroma.

    is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions. Limited liability - is a form of business protection for company shareholders and some limited partners.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work