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Costs-benefit Analysis of Quality Assurance in Australian Wool Production

Author

Listed:
  • Bent, Martin
  • Stanton, John
  • Senior, Anna
  • Coss, Linda

Abstract

Low average returns to producers have been a feature of the Australian wool sector, particularly over the last five years. Quality assurance (QA) has been considered by many in the industry as a possible way to improve prices through increasing the “customer’s” confidence in the product. Several QA schemes have emerged. Adoption has not been as widespread or as immediate as hoped. One of the incentives to adopt QA might be the expectation of a financial benefit. This paper presents the results of a survey into actual and anticipated costs and benefits of QA as perceived by adopting and non-adopting Australian wool growers and a statistical analysis of wool price differentials at auction that can be attributed to a QA mark.

Suggested Citation

  • Bent, Martin & Stanton, John & Senior, Anna & Coss, Linda, 1997. "Costs-benefit Analysis of Quality Assurance in Australian Wool Production," 11th Congress, University of Calgary, Canada, July 14-19, 1997 346419, International Farm Management Association.
    • Handle: RePEc:ags:ifma97:346419
    DOI: 10.22004/ag.econ.346419
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