PRICE STABILISATION POLICIES: HAS THE MEAT SCHEME BENEFITED BEEF PRODUCERS IN SOUTH AFRICA?

W. F. Lubbe

Agrekon, 1992, vol. 31, issue 2

Abstract: Prices should be non-distortive signals for production and consumption. Deterministic price behaviour patterns (cycles) and rainfall cycles resulted in cyclical supply variation through a process of herd expansion/liquidation. This apparently promoted inefficient management strategies at farm level and distorted production and marketing of beef. Significant seven year supply cycles for beef were isolated and used to determine producers' supply response flexibilities to rainfall and price cycle variation. Multiple regression analysis with distributed lag models were used. Significant lagged supply responses indicate that price signals were distorted and aided the climatological inflexibilities of beef production. Nominal beef producer prices were not stabilised and the control measures, employed for this purpose, effectively reduced farmers' marketing opportunities and thereby increase their exposure to production, price, marketing and income risks. Controlled marketing of red meat failed to stabilise producer prices of beef or to promote the producers' interests.

Keywords: Demand and Price Analysis; Livestock Production/Industries (search for similar items in EconPapers)
Date: 1992
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/267519/files/agrekon-31-02-004.pdf (application/pdf)
https://ageconsearch.umn.edu/record/267519/files/a ... 4.pdf?subformat=pdfa (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267519

DOI: 10.22004/ag.econ.267519

Access Statistics for this article

More articles in Agrekon from Agricultural Economics Association of South Africa (AEASA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().