Read the following excerpts from

'Goat meat as alternative meat source has producers struggling to keep up with demand'

Jessica Schremmer

2 August 2019

https://www.abc.net.au/news/rural/2019-08-02/goat-meat-prices-soar-amid-drought-and-strongconsumer-demand/11374994

Goat meat producers are struggling to keep up with demand as consumers turn to alternative meats, and a dwindling supply due to the drought sees prices jump to record levels. Prices remain at $9-10 per kilo, after over-the-hook prices hit an all-time high of $10.30 per kilo carcase weight in May this year. Meat and Livestock Australia's Julie Petty said last time they saw a significant price spike was in 2017 at $7.50 but current prices were unprecedented. "For a producer, if you do have animals that are ready to be sent to market it's an excellent price to be receiving for these animals," Ms Petty said. However, she explained the drought and tough seasonal conditions forced many producers to destock their properties some time ago, which led to a reduced supply. "We are seeing increased strong demand on both the international and domestic market," she said. Goat Industry Council Australia's Campbell McPhee said, as the world market was screaming out for more of Australia's goat meat, he hoped it encouraged people to invest in the industry. "Domestically there has certainly been an increase of consumption of goat meat and people are looking for an alternative meat."

Your task: Use the demand and supply model (including a diagram or diagrams) to support an explanation of why the price of goat meat has recently reached an all-time high according to this excerpt.

Grading: Please also refer to the grading rubric that is available on MyUni, and ensure that you have addressed the assessment criteria found there.

Grading points are mention below:

This criterion is linked to a learning outcome

Any impacts on Demand clearly explained

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Any impacts on Supply clearly explained

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Demand and Supply diagram correctly drawn to show proposed changes in D/S curves

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Explanation of the demand and supply model diagrams

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Correct price and quantity outcomes of model clearly explained

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Appropriate economic terminology used without error

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Appropriate logical sequence of ideas

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Appropriate writing style and tone

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Explanation clearly related back to article content