Ex post evaluation of 1.2 Support industry and government to maintain and liberalise world meat markets (Economic benefits of changes in non-technical barriers to trade only)

Summary

​Ex-post evaluation of MLA's Market compliance Program
An evaluation of MLA’s Market compliance Program (MAP) was completed in September 2014.  This work re-examined the previous ex-post evaluation of the MAP completed by the Centre for International Economics (CIE) and published by MLA in 2007.  
The analysis undertaken calculated the return on investment for the MAP over the period 2006/07 to 2012/13.  The MAP is managed / co-ordinated by MLA and involves co-investment of producer levies and matching processor contributions.  MLA and AMPC co-invested $29.74 million over this period.  [This is equivalent to $32.9 million in 2012-13 dollar equivalents using the standard MLA discount rate of 7%.]  
The benefit streams were estimated from 2006 to 2030.  Over the 24 year period, the total benefits that could be delivered by these activities are valued at $5.6 billion - with beef accounting for over 90% of this total.  The internal rate of return for the headline analysis is: 47% for red meat - and 58.3% for beef and 20.7% for sheepmeat.  
At an average benefit attribution level of 21% back to the MAP, the program’s share of the present value of benefits is estimated at $1.3 billion.  
This benefit, compared to the present value of costs over the period 2006-13 produced the following headline results:
1. the expected payoff in terms of the total red meat benefit cost ratio, is significant at 39.9 to 1;  and
2. the benefit cost ratio for beef is estimated at 54.6 to 1 compared to 9.4 to 1 for sheepmeat (as most of the FTA related gains over the review period have been in beef focused export markets).  
A final report will be published shortly.