School of Agriculture, Food and Ecosystem Sciences - Theses

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End date: 2007 × Start date: 2000 × Type: Masters Research thesis × Subject: Advertising × Subject: Australia × Subject: Marketing ×

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    Advertising and Australian pig producers welfare
    Zhang, Lin ( 2000)
    The pig meat market in Australia is characterized by generic (fresh pork, bacon etc.) advertising. These advertising expenditures are funded from collective levies from pig producers. At the same time, there are extensive brand advertising activities in the pig meat market. Whether or not there has been an impact of advertising on pig meat consumption has been a long-standing argument. Moreover, producers are concerned about the levies they have paid. So far, there have been several studies done on the effectiveness of generic pig meat advertising in Australia and pig producers welfare. However, the previous studies only looked at generic advertising and didn't account for other media information such as brand advertising and fast food advertising effects on meat consumption. As well, the previous studies are contradictory about the historical effects of generic pig meat advertising. In this study, a simultaneous model that links the production and marketing of pig meat is established to estimate the relationship between advertising, consumption of pig meat and welfare of pig producers for the period of 1985 - 1997. The model consists of a two-stage demand system derived from a translog indirect utility function for five meats: beef, lamb, chicken, pork and bacon and ham, a single supply equation and a single demand equation for pigs, a pig meat trade equation and a retail farm price linkage equation. The simultaneous results show that current advertising on pork is more effective than the current advertising on bacon & ham. In terms of the Australian pig industry's marketing strategies, the study suggests that more money should be invested m pork advertising, but less money should be invested in bacon & ham advertising.