Models for the Analysis of Barley Marketing

Barley marketing, like a number of other commodities in Australia, is subject to the requirements of the Hilmer reforms. Approaches to the analysis of the possiblederegulation of barely marketing are considered. Emphasis is placed on the use of a spatial equilibrium model designed to assess the consequences of different degrees of market power exerted over the export and domestic markets and econometric techniques designed to assess the extent that prices in different export markets differe from what might be expected without exerting market power. Results are obtained which illustrate the fact that rents can be extracted from markets if market power can be exerted and they also provide information on the distribution of the rents. It is also observed that the Japanese import policy has a significant impact on the ability of Australia to extract price premiums.