E-commerce and its Projected Impacts on Agriculture
Ministry of Agriculture and Forestry
June, 2000
NZ INSTITUTE OF ECONOMIC RESEARCH (INC.)
8 Halswell St. Thorndon
P O BOX 3479 WELLINGTON
Tel: (04) 472 1880
Fax: (04) 472 1211
Authorship
This report has been prepared at NZIER by Chris Nixon and reviewed by Alex Sundakov and John Feil.
Technical Paper No 01/4
ISBN 0-478-07971-0
Contents
1. Introduction
2.1 What is e-commerce?
2.2 Tools of analysis
2.2.1 New economy influences
2.3 Summary of questions
3. Assessment of developments likely to impact on New Zealand
3.1 Wools of New Zealand
3.1.1 E-commerce up-take by farmers
3.1.2 Introduction to Woolnet
3.1.3 Critical mass is important
3.1.4 Comparison with the auction system
3.1.5 Role of Government
3.1.6 Other issues
3.1.7 Expected Impact
3.2 Meat New Zealand
3.2.1 Introduction
3.2.2 Expected Impact
3.3 New Zealand Dairy Board
3.3.1 Impact of e-commerce
3.3.2 Price discovery
3.3.3 Future price falls
3.3.4 Role of Government
3.3.5 Expected impact
4. Analysis of policy implications
4.1 Market effects
4.1.1 Productivity gains
4.1.2 Ability to maintain margins
4.1.3 Market power
4.1.4 New business opportunities
4.2 Role of government
5. Bibliography
Figures
Figure 1: Framework for analysing the impact of e-commerce on agri-businesses
Figure 2: Application of economics to e-commerce: supply increase
Figure 3: Expected e-commerce development: medium term
Figure 4: Stylised representation of e-commerce impacts on wool
Figure 5: Meat Board e-commerce links
Figure 6: Stylised representation of e-commerce impacts on meat
Figure 7: Likely profit erosion as a result of e-commerce
Figure 8: Stylised representation of e-commerce impacts on dairy
Tables
Table 1: Economic evaluation of new e-commerce market structures
Table 2: Comparison of auction systems
Table 3: Economic evaluation of new e-commerce market structures *
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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