Two options were reviewed for formal market level modelling of research and promotion investments in the Australian beef industry. One option, the DREAM (Dynamic Research Evaluation for Management) model (IFPRI 2001), provided a regional disaggregation of the total benefits from the adoption of a new technology or promotion campaign but vertical disaggregation within the model is limited to a simple division of total benefits between producers and consumers.
The second option, the Zhao et al. (2000) beef equilibrium displacement model (EDM), provided a detailed disaggregation of total benefits across the value chain but it is based on average 1992-1997 data. The objectives of this project were to review and update the Zhao et al. model. Based on available information it was determined that the current industry structure and industry responses to price changes were similar to the industry structure and responses for the 1992-1997 period.