Market Information Program Evaluation

Summary

This report evaluated three key propositions about the outputs of the MIP (market Information Program) over the timeframe 1998-99 to 2007-08.
​​Do key target audiences for market and industry information value the data and analysis provided and use it to help inform business decisions that result in economic benefit across the entire industry?
Does the provision of timely access to market information to all industry participants overcome an gaps in market knowledge that would otherwise lead to lower levels of competition in the various markets for Australian livestock, resulting in less efficient or effective price discovery and greater volatility?
Does the provision of market information have public good attributes because it contributes to the underlying infrastructure necessary to allow the market for livestock to operate efficiently? It has been possible in this report to place a value on the benefits of the first of these propositions, but the other two broader industry benefits are not amenable to valuation?
Total MLA program expenditure amounted to nearly $34 million over this period. Total nominal expenditure of $4.3 million for 2007-08 for this program represented 2.8 per cent of total MLA expenditure. Investments made by MLA in market information span six broad clusters or sub-program areas.
It is useful to classify these investments into the following categories:information infrastructure  database access and maintenance, National Livestock Reporting Service (NLRS) and industry surveys;value-adding — competitor analysis and market intelligence; andrisk management — creation of a cattle futures market.
The scope and the number of products offered by this program is substantial in addressing the needs of users throughout the red meat value industry, and within MLA, and of peak council bodies and governments. Some of the most popular services provided by the program include Meat and Livestock Weekly (MLW) and the Industry Projections. A feature of the program is the evolution of the number and scope of services produced in response to changes in markets as well as how these products are delivered. This shows that the program has responded to its requirement to ‘fill gaps’ in market information for the red meat sector — especially in the incorporation of the NLRS, expansion of other-the-hooks (OTH) reporting and the recognition of the need to monitor developments in international markets. There have also been changes to address the needs of users to have information provided promptly via email or from the MLA website.