A number of different policies have been implemented to enhance development of different parts of the Bali beef industry. However, information on the benefits is limited and therefore evaluation of the various policies is required to guide future policy development. This paper explores the benefits from cattle development in a multi-stage production representation of the Bali beef industry using equilibrium displacement modelling. The impact on various industry groups such as smallholders, processors, retailers and consumers, is estimated in terms of their welfare changes. The results demonstrate that for a one per cent exogenous shift in the relevant market (from productivity advances or quality improvements), improved productivity of Bali cattle production has the largest total benefits (Rp 3.02 billion, about A$ 0.6 million), over a time period of two to three years. Bali cattle producers receive substantial benefits (35 to 71 per cent of total returns) from any cost reduction or improved efficiency scenario. The authors conclude that this model seems appropriate for examining other types of research and development and policy scenarios, however further research would be needed in several areas.
Download reference document (PDF 222.9 KB)
Ambarawati I.G.A.A., Zhao X., Griffith G. and Piggott R.
Working Paper Series in Agricultural and Resource Economics
University of New England Graduate School of Agricultural and Resource Economics & School of Economics, Australia. ISSN 1442 1909