Testing for Market Power in Multiple-Input, Multiple-Output Industries: The Australian Grains and Oilseeds Industries

Recent empirical studies have found significant evidence of departures from competition in the input side of the Australian bread, breakfast cereal and margarine end-product markets. For example, Griffith (2000) found that firms in some parts of the processing and marketing sector exerted market power when purchasing grains and oilseeds from farmers. As noted at the time, this result accorded well with the views of previous regulatory authorities (p.358). In the mid-1990s, the Prices Surveillence Authority (PSA 1994)determined that the markets for products contained in the Breakfast Cereals and Cooking Oils and Fats indexes were "not effectively competitive"(p.14). The PSA consequently maintained price surveillence on the major firms in this product group. The Griffith result is also consistent with the large number of legal judgements against firms in this sector over the past decade for price fixing or other types of non-competitive behaviour. For example, bread manufacturer George Weston was fined twice during 2000 for non-competitive conduct and the ACCC has also recently pursued and won cases against retailer Safeway in grains and oilseeds product lines. Griffith obtained his results using highly aggregated data and a relatively simple empirical model. In this study we focus on confirming the earlier results by formally testing for competitive behaviour in the Australian grains and oilseeds industries using a more sophisticated empirical model and a less aggregated grains and oilseeds data set. We specify a general duality model of profit maximisation that allows for imperfect competition in both the input and output markets of the grains and oilseeds industries. The model also allows for variable-proportions technologies and can be regarded as a generalisation of several models appearing in the agricultural economics and industrial organisation literatures. Aggregate Australian data taken from the 1996-97 input-output tables are used to define the structure of the relevant industries, and time series data are used implement the model for thirteen grains and oilseeds products handled by seven groups of agents. The model is estimated in a Bayesian econometrics framework. Results are reported in terms of the characteristics of estimated probability distributions for demand and supply elasticities and indexes of market power. Our results suggest that there is a positive probability that: (a) flour and cereal food product manufacturers exert market power when purchasing wheat, barley, oats and triticale; (b) beer and malt manufacturers exert market power when purchasing wheat and barley; and (c) other food product manufacturers exert market power when purchasing wheat, barley, oats and triticale. What is interesting is that each of the transaction nodes where market power is indicated is one where a farm commodity is sold to a processing sector that is, the evidence suggests oligopsonistic behaviour by grains buyers. The wheat and barley industries seem to be especially disadvantaged by this type of market conduct. A related and equally interesting result is that there was no consistent evidence of market power in the downstream nodes of the data set relating to the sales of flour and other cereal foods, or the sale of bread and other bakery products. These transaction points are where legal judgements against suppliers have been made in the recent past. We have stated our results in quite cautious language, as there is much uncertainty surrounding our estimates. This stems partly from the lack of good quality data, so we suggest that one avenue for future research should be improving the collection and integrity of relevant data (especially including the retail and distributive nodes of the various markets).Industrial Organization, Marketing,

Intersection Information based on Common Randomness

The introduction of the partial information decomposition generated a flurry of proposals for defining an intersection information that quantifies how much of "the same information" two or more random variables specify about a target random variable. As of yet, none is wholly satisfactory. A palatable measure of intersection information would provide a principled way to quantify slippery concepts, such as synergy. Here, we introduce an intersection information measure based on the G\'acs-K\"orner common random variable that is the first to satisfy the coveted target monotonicity property. Our measure is imperfect, too, and we suggest directions for improvement.Comment: 19 pages, 5 figure

Estimation of intrafamilial DNA contamination in family trio genome sequencing using deviation from Mendelian inheritance

With the increasing number of sequencing projects involving families, quality control tools optimized for family genome sequencing are needed. However, accurately quantifying contamination in a DNA mixture is particularly difficult when genetically related family members are the sources. We developed TrioMix, a maximum likelihood estimation (MLE) framework based on Mendel\u27s law of inheritance, to quantify DNA mixture between family members in genome sequencing data of parent-offspring trios. TrioMix can accurately deconvolute any intrafamilial DNA contamination, including parent-offspring, sibling-sibling, parent-parent, and even multiple familial sources. In addition, TrioMix can be applied to detect genomic abnormalities that deviate from Mendelian inheritance patterns, such as uniparental disomy (UPD) and chimerism. A genome-wide depth and variant allele frequency plot generated by TrioMix facilitates tracing the origin of Mendelian inheritance deviations. We showed that TrioMix could accurately deconvolute genomes in both simulated and real data sets

The food safety culture in a large South African food service complex: Perspectives on a case study

Published ArticleThe purpose of this paper is to assess elements of food safety management and food safety culture within a prominent South African entertainment, hotel and food service complex. Design/methodology/approach In this paper a qualitative case study approach was used. Following a comprehensive literature review, based on factors known to be important in developing a food safety culture, in combination with national and international food safety standards, an interview guide was constructed and utilised in a series of semi-structured interviews. The interviewees represented different management levels involved in food delivery but did not include board level managers. Findings Many of the factors considered important in good food safety management, including the presence of a formal food safety policy and the creation and maintenance of a positive food safety culture, were absent. Although a formal system of internal hygiene auditing existed and food safety training was provided to food handlers they were not integrated into a comprehensive approach to food safety management. Food safety leadership, communication and support were considered deficient with little motivation for staff to practise good hygiene. Originality/value Food safety culture is increasingly recognised as a contributory factor in foodborne disease outbreaks and is the focus of increasing research. However, although every food business has a unique food safety culture there are relatively few published papers concerning its analysis, application and use within specific businesses. This case study has identified food safety culture shortcomings within a large food service facility suggesting there was a potentially significant food safety risk and indicates ways in which food safety could be improved and the risk reduced. The results also suggest further work is needed in the subject of food safety culture and its potential for reducing foodborne disease

The Demand for Beef in Indonesia: Implications for Australian Agribusiness

Meat consumption and socio-demographic data from the 1990, 1993 and 1996 SUSENAS Household Food Expenditure and Consumption Surveys were employed to estimate the demand for meats in Indonesia. The focus was on the Provinces of DKI Jakarta and West Java where about one-fourth of the Indonesian population reside. Statistical and econometric procedures were used to aggregate the 16 meat types recorded in the SUSENAS into four Meat Groups. They were then used to estimate the Linear Approximation of the Almost Ideal Demand System (LA/AIDS) model, taking into account zero observations and the restrictions on budget shares. The demand for Meat Group 1 (with the dominant meat, beef) is income-inelastic, whereas for Meat Group 2 (with the dominant meat, commercial and native chicken) it is income-elastic. These two groups comprise nearly 95 per cent of all meat purchases. The estimated own-price elasticity of the beef group is -0.92, while that for the chicken group is -1.09. The cross-price elasticities indicate that all the meat groups are substitute goods, as expected. The results suggest that the current focus of the Indonesian government on strengthening the domestic poultry industry is well placed, as the demand for chicken is likely to respond more quickly to income growth than the demand for beef. Further, consumers seem more likely to adapt their chicken consumption patterns to price changes than they do for beef. However, these differences are relatively minor and there is still a major opportunity for Australian agribusiness firms in the cattle and beef sectors to take advantage of the projected rapid growth in Indonesian beef demand.beef demand, almost ideal demand system, commodity aggregation, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries,

A case of acute myeloid leukemia with promyelocytic features characterized by expression of a novel RARG-CPSF6 fusion

Key Points Novel RARG-CPSF6 fusion in an AML case with promyelocytic features and no evidence of PML-RARA or X-RARA fusion. Gene fusions involving RARG can initiate AML with promyelocytic morphological features.</jats:p

Experimental Evidence for Different Strain Regimes of Crack Populations in a Clay Model

We report results from clay extension experiments used as a model for the evolution of fault populations due to stress interactions. At yielding cracks begin to appear and the brittle strain due to them quickly reaches a rate matching the applied stretching rate. The crack density (number of cracks per unit area) initially increases apace, then reaches a maximum at a critical strain, decreasing thereafter. At low strains, where the crack population is dilute, a power law length distribution is observed, which at high strain, gradually transitions to an exponential. This agrees with fault populations data observed in low and high strain settings. These results indicate that fault populations ranging from power law to exponential size-frequency distributions reflect the population evolution with increased strain

A common founding clone with TP53 and PTEN mutations gives rise to a concurrent germ cell tumor and acute megakaryoblastic leukemia

We report the findings from a patient who presented with a concurrent mediastinal germ cell tumor (GCT) and acute myeloid leukemia (AML). Bone marrow pathology was consistent with a diagnosis of acute megakaryoblastic leukemia (AML M7), and biopsy of an anterior mediastinal mass was consistent with a nonseminomatous GCT. Prior studies have described associations between hematological malignancies, including AML M7 and nonseminomatous GCTs, and it was recently suggested that a common founding clone initiated both cancers. We performed enhanced exome sequencing on the GCT and the AML M7 from our patient to define the clonal relationship between the two cancers. We found that both samples contained somatic mutations in PTEN (C136R missense) and TP53 (R213 frameshift). The mutations in PTEN and TP53 were present at ∼100% variant allele frequency (VAF) in both tumors. In addition, we detected and validated five other shared somatic mutations. The copy-number analysis of the AML exome data revealed an amplification of Chromosome 12p. We also identified a heterozygous germline variant in FANCA (S858R), which is known to be associated with Fanconi anemia but is of uncertain significance here. In summary, our data not only support a common founding clone for these cancers but also suggest that a specific set of distinct genomic alterations (in PTEN and TP53) underlies the rare association between GCT and AML. This association is likely linked to the treatment resistance and extremely poor outcome of these patients. We cannot resolve the clonal evolution of these tumors given limitations of our data

WISE J163940.83-684738.6: A Y Dwarf identified by Methane Imaging

We have used methane imaging techniques to identify the near-infrared counterpart of the bright WISE source WISEJ163940.83-684738.6. The large proper motion of this source (around 3.0arcsec/yr) has moved it, since its original WISE identification, very close to a much brighter background star -- it currently lies within 1.5" of the J=14.90+-0.04 star 2MASS16394085-6847446. Observations in good seeing conditions using methane sensitive filters in the near-infrared J-band with the FourStar instrument on the Magellan 6.5m Baade telescope, however, have enabled us to detect a near-infrared counterpart. We have defined a photometric system for use with the FourStar J2 and J3 filters, and this photometry indicates strong methane absorption, which unequivocally identifies it as the source of the WISE flux. Using these imaging observations we were then able to steer this object down the slit of the FIRE spectrograph on a night of 0.6" seeing, and so obtain near-infrared spectroscopy confirming a Y0-Y0.5 spectral type. This is in line with the object's near-infrared-to-WISE J3--W2 colour. Preliminary astrometry using both WISE and FourStar data indicates a distance of 5.0+-0.5pc and a substantial tangential velocity of 73+-8km/s. WISEJ163940.83-684738.6 is the brightest confirmed Y dwarf in the WISE W2 passband and its distance measurement places it amongst the lowest luminosity sources detected to date.Comment: Accepted for publication in The Astrophysical Journal, 20 September 201