Abstract
The implications of reform of sugar tariffs and removal of the Queensland sugar monopoly for returns to Queensland and New South Wales sugar producers are examined in a market share model. Regression estimates of own-price domestic sugar elasticities are incorporated into the share framework and changes in producer surplus and asset values associated with the proposed reforms calculated. The major conclusions are (1) that removal of the Queensland monopoly would have a substantial impact on welfare of sugar producers in both Queensland and New South Wales (2) that removal of the tariff would have a substantial effect on the welfare of New South Wales producers but a relatively small effect on Queensland producers and (3) that removal of the tariff would have no effect on the level of imports of refined sugar.
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