Review Of Lucy Craymer, Us Demand Lifts Australian Beef Prices

The United States beef cattle industry is one of the most important national enterprises that exist in our economy today. Beef cattle production takes place in all 50 states and affects either directly or indirectly over 90% of our population. Though some American citizens may not understand or appreciate this industry, without it our nation would be the worse for it. However, there is always a positive and negative side to ever story. This industry has had some challenges which have affected our economy, and there are always new concerns arising that could potentially change the everyday life of the cattle producer and the soccer mom in the grocery store alike. The goal of this paper is to discuss the sheer size of this industry, the amount

The beef industry is an important asset to United States agriculture as a whole. Over a million agricultural entities benefited from the sales of cattle and calves in the year 2000. Gross totals from sales of cattle and calves in 2000 totaled $40.76 billion accounting of 21% of all agricultural receipts making the beef sector the largest single agricultural enterprise. Direct and indirect employment in or related to the production and processing of beef supports over 1.4 million full-time-equivalent jobs in the US as well. Cattle are produced in all 50 states and their economic impact contributes to nearly every county in the nation and they are a significant economic driver (Lawerance and Otto, 2000).

The National Cattlemen’s Beef Association is a trade association and policy group that represents all segments of the cattle industry: producers, feeders, and breeders. The association has over 28,000 individual members and represents over 230,000 people in the industry. The current president of NCBA, Scott George, is a cow/calf producer from Wyoming with a long history in the dairy industry and policy groups as a member of the Farm Bureau. In addition to its role in U.S. policy, the NCBA conducts research, marketing, and promotional work for cattle ranchers. The NCBA’s vision is “an industry united around a common goal of being the world’s most trusted and preferred source of beef and beef products.” The economic interests of the cattle

The elasticity of demand measures the buyer’s reaction to price as its changing. “Economists measure the degree to which demand is price elastic or inelastic with the coefficient E d, defined as E d = percentage change in quantity demanded of product X/ percentage change in price of product X” (McConnell, C. 2011). Therefore, Ed=∆Qd/∆Pd. When elasticity of demand is measured less than one, demand is considered to be inelastic. The coefficient in an inelastic range is less than one. When this takes place the percentage change in price is more than the percentage change in quantity. It can be said that when inelastic demand is present that quantity becomes less effected by price changing.

Benefits the economy, supports thousands of Australian jobs and is helping to provide protein to some of the world’s poorest people across Asia and the Middle East. Australia’s beef cattle exports are wroth $1.35 billion and the sector employs more than 10,000 people, including many Indigenous Australians.

In the article, “Another Year of the Chicken: U.S. Beef Supply Will Fall Again in 2015” (2014) the author, Vanessa Wong, analyzes how the the price of beef and been increasing resulting in more of a demand in chicken. Wong goes on to state that the increase in beef resulted from an extreme drought in 2012 “caused feed prices to spike and, in response, farmers thinned their herds” (Wong, 2012). More of a demand in chicken has also been noticed in restaurants. The price of chicken increased five percent as opposed to the nine percent increase in beef at Chipotle Mexican Grill restaurants. However, by the year 2016 Tyson Foods has projected that the cattle supplies will be down to has little as one percent. In truth, the price of beef will decrease.

Understanding the law of demand pertaining to the elasticity of demand with other things equal measures consumers’ responsiveness or sensitivity to change in price of a product. The measuring of the degree of change or percentage of change will result in either elastic, inelastic, or unit demand.

Supply and demand is a fundamental element of economics; it is the main support system of a market economy. Demand can be interpreted by the quantity of a product or service a consumer is desired to acquire at a given time period. Quantity demanded is the amount of product consumers are willing to purchase at a given price; the relationship between price and quantity demanded is commonly known as the demand relationship. Supply however, accounts for how much a market produces for consumers. The quantity supplied refers to the actual amount of a certain good firms are willing to supply to consumers when receiving a certain price. Having limited resources we all have to

The Law of Demand states that as the price increases, then the demand will decrease, and vice versa. In the article, the demand for turkeys increases during Thanksgiving, while the price drops. The change in demand is due to the increase in preferences for turkeys. During the holiday season, people prefer to eat turkey at the dinner table with family, so the demand for turkeys will increase. The Law of Supply states that as the quantity supplied increases, the price should increase, and vice versa. This is opposite in respect to turkeys as the quantity supplied increases as the price decreases. This is because the supplier’s want to attract the customers to buy their product and not their competitors. Inelastic supply is when the quantity supplied remains constant as price changes. This relates to the roses and fresh turkey, as there is a limited supply of these products, so the price will change but the supply will stay

Society's demand for frozen beef is ridiculously high. One reason this is high is because of food companies and restaurants use this meat on a daily basis. It is easier to use frozen meat because it keeps for a long time and can be cheaper and bought in bulk. The price for frozen beef should be increased causing less consumers to buy products with this. People would buy it less because the price would increase so food companies could still make a profit. Incentives should be developed so people feel like they are not eating this kind of meat for nothing. One way to reduce the frozen meat intake is to raise the price of frozen meat causing buyers to buy fresh meat. McDonald's posted a statement about this issue on their website for a few reasons.

Australia’s primary exports lie in natural resources and agricultural commodities (Siriwardana, 2015). The Australian beef industry is the sixth largest exporter in the world where average beef exports from Australia are approximately 1.3 million tonnes, amounting to approximately 65% of total beef production (Tozer and Marsh, 2012). In a global context, Australia is the sixth largest beef producer and the second largest beef exporter, therefore it would be most efficient for Australia to trade with other nations who produce and export beef less effectively (Meat & Livestock Australia, 2016).

The cattle industry produces vast amounts of strain in the environment. It is energy inefficient, pollutes water, occupies many acres of land, and deteriorates the health of the people who abuse its consumption. The government subsidizes this industry. Therefore, the price paid for meat doesn’t reflect the environmental hazards involved in the process. In order to protect our health and the health of the environment we should pay close attention to our food choices and make sure we don’t support industries that degrade it.

When the elasticity of demand is elastic, the change in quantity will be greater that the change in price. Hence, the total revenue will reduce with increasing prices and increase as prices decrease. However, if the business offers goods or services with inelastic price elasticity of demand, then the change in quantity demanded will be smaller than the change in price. Consequently, the total revenue, which is a product of the two will increase when

2013, 3). What is the meaning of demand ? “demand is a relationship between price of the good and the quantity demanded of the good (Curtin University 2015).” The law of demand is, “Holding everything else constant, [ceteris paribus] when the price of a product increases the quantity demanded will fall, and when the price of a product decreases, the quantity demanded will rise (Curtin University 2015).” According to Curtin University, “Price and quantity demanded are negatively related, as the law of demand.” The demand curve In the figure 1, previously, customers who want to buy iPhone 6 in 16 GB storage must pay AU$869, however, they must pay more which the cost is AU$999 now and the quatity demanded from point X to point Y automatically decreases. It means that “there is a movement along from point A to point B because the price rises (Curtin University 2015).”

Demand for a product or service can be defined as the amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price over a specific period of time. The demand is usually downward sloping, since consumers will want to buy more as the price decreases. Demand for a good or service is determined by different factors other than price, such as the price of substitute goods and complementary goods. In extreme cases, demand may be completely unrelated to price, or nearly infinite at a given price (in the case of the tobacco industry) (Beardshaw, 1991).