Agricultural markets and marketing policies

Abstract

Agricultural markets and marketing policies in Australia have changed markedly in recent years. In part, this has occurred because of conscious deregulation of previous price support and stabilisation schemes. Occasionally, the changes occurred because of poor administration and spectacular default. Previous price and marketing policies schemes provided differential rates of assistance with adverse consequences for resource allocation. Pricing arrangements affected marketing institutions and marketing costs beyond the farm gate, domestically and internationally. The conceptual basis of agricultural marketing analysis was contested. Private and public roles were confused, including between Commonwealth and state governments. Key principles of agricultural marketing and policy development in Australia are illustrated in the paper by reference to commodities with different histories and economic characteristics: wool, wheat, dairying and meat. Special emphasis is given to market information and price discovery. In line with continuing urbanisation and modern logistics, retail marketing of agricultural products has also been transformed. This has become controversial as a policy issue. Competition issues, the economic behaviour and performance of supermarkets, and their effects on farmers and consumers are also introduced in the paper.