| Australian broadacre agriculture is typified by strong cross-commodity relationships, where sheep and cattle grazing enterprises compete for pasture and both compete with wheat and other crops for land. Further, some commodities produced by multi-product farms are also used in the production of final products that are substitutes in demand, such as beef and lamb. Economic analyses of the beef market, for example, should also include consideration of the market for the related product, lamb. In this paper the effects of exogenous demand and supply shifters on the wholesale-farm price ratio in two closely related industries, beef and lamb, are examined in a Gardner type of model and the effects of excluding consideration of the cross-commodity interactions... |
