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Research Payoff From Quality Improvement: The Case Of Backfat Depth In Pigs

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  • J. P. Voon
  • G. W. Edwards

Abstract

Closed‐market models embodying alternative specifications of supply, demand and substitutability conditions are developed to measure the economic benefits from a research‐caused improvement in quality. The models are applied to the estimation of the economic benefits from reducing backfat depth in Australian pork. A major finding is that the Australian pig industry has the potential to derive a gross research benefit of about $7 million per annum from a 10% reduction in backfat thickness in pigs. Under each of the chosen specifications, the larger share of this gain accrues to pig producers. There could be additional social gains as a result of health benefits not incorporated in consumers' valuations.

Suggested Citation

  • J. P. Voon & G. W. Edwards, 1991. "Research Payoff From Quality Improvement: The Case Of Backfat Depth In Pigs," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 66-76, January.
    • Handle: RePEc:bla:jageco:v:42:y:1991:i:1:p:66-76
    DOI: 10.1111/j.1477-9552.1991.tb00333.x
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    1. Dey, Madan Mohan & Kumar, Praduman & Chen, Oai Li & Khan, Md. Akhtaruzzaman & Barik, Nagesh Kumar & Li, Luping & Nissapa, Ayut & Pham, Ngoc Sao, 2013. "Potential impact of genetically improved carp strains in Asia," Food Policy, Elsevier, vol. 43(C), pages 306-320.
    2. Holloway, Garth J. & Peyton, L. James & Griffith, Garry R., 2000. "Was the Australian Meat and Live-stock Corporation's advertising efficient?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(01), pages 1-27.
    3. T. J. P. Voon, 1992. "A Cross‐Commodity Appraisal Of Demand‐Raising Research Benefits: Pork And Chicken In Australia," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 243-247, May.
    4. Martinez, Steve & Zering, Kelly, 1997. "Vertical Coordination and Consumer Welfare: The Case of the Pork Industry," Agricultural Economic Reports 262048, United States Department of Agriculture, Economic Research Service.
    5. Quagrainie, Kwamena K. & Unterschultz, James R. & Jeffrey, Scott R., 2000. "The Impact Of Post-Farmgate Value-Adding On Western Canadian Agriculture," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36379, Western Agricultural Economics Association.
    6. Unterschultz, James R. & Jeffrey, Scott R. & Quagrainie, Kwamena K., 2000. "Value-Adding 20 Billion By 2005: Impact At The Alberta Farm Gate," Project Report Series 24049, University of Alberta, Department of Resource Economics and Environmental Sociology.
    7. Marasas, C.N. & Smale, Melinda & Singh, R.P., 2004. "The Economic Impact in Developing Countries of Leaf Rust Resistance Breeding in CIMMYT-Related Spring Bread Wheat," Economics Program Papers 48768, CIMMYT: International Maize and Wheat Improvement Center.

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