209-301 Agricultural Marketing

Availability

Credit Points

HECS Band

Coordinator

Prerequisites

209-101 Economics of Resource Use or 316-102 Introductory Microeconomics.

Semester

Contact

Subject Description

At the end of the course students should be able to:

• understand the application of economic theory to marketing decisions for agricultural, forest and horticultural products;

• analyze implications of changes in macroeconomics, domestic and international policy for primary producers of all products;

• analyze implications of different market structures for producer, processor, retailer and consumer behaviour;

• develop marketing behavioural rules such as optimal (eg advertising and research) investment rules for industry individuals under a variety of market structures;

• and use basic algebraic, regression and simulation techniques to examine marketing issues empirically.

The subject covers areas of:

• food fibre and forest product supply and demand relationships - perennial and annual crops and livestock sector modeling - dynamic relationships - habit formation - price formation under different market structures;

• spatial and temporal implication for market equilibrium of price and quantity - storage;

• trade policies - impact and response - tariffs - export subsidies - phytosanitary regulations;

• marketing organizations and group decision making for primary producers - collective vs. individual;

• domestic policy on grading, standards, food, safety and security;

• market information and insurance;

• advertising/ research (primary)/ research (processing) investment implications and strategy;

• and market structure- (monopoly, oligopoly, competitive) implications for marketing strategies for producers, processors and retailers.

Assessment

A three-hour examination (60%), and two assignments equivalent to 3000 words (each worth 20%).

Prescribed Texts

• Godden, D., Agricultural and Resource Policy. 1997, Oxford University Press, Melbourne.
• Helmburger, P.G., and Chavas, J., The Economics of Agricultural Prices. 1996, Prentice Hall, New Jersey.
• Tomek, W.G., and Robinson, K.L., Agricultural Product Prices. 1990, Cornell University Press.