The Role of Expected Protein Levels in Determining the Impact of Protein Premiums and Discounts: A Note
Posted: 9 Aug 2000
Fraser (1997) considered the impact of protein premiums and discounts on a grower's income stream and willingness-to-pay for a forward contract where the protein premium and discount system is centred on a grower's existing expected protein level. This article extends these results to consider the impact of a protein premium and discount system which is not centred on a grower's existing expected protein level. The article suggests that the grower's existing expected protein level plays a crucial role in determining the impact of the system.
JEL Classification: Q12
Suggested Citation: Suggested Citation