The production and utilization of biofuels is promoted in many countries and regions, and these markets are expected to expand in the future. Our study uses a dynamic partial equilibrium model to examine how Brazilian bioethanol production will impact Brazilian and world sugar markets. If the Brazilian government abolished anhydrous blends for gasoline beginning in 2013/14, the international sugar price would decrease by 12.4% by 2017/18. The study result shows that\ Brazilian bioethanol consumption has an impact on international sugar prices. While the lower international sugar price could be beneficial to sugar-consuming regions, it could damage sugar-producing and sugar-exporting countries that depend heavily on sugar exports. Thus, it is concluded that the Brazilian bioethanol policy has a floor price effect for the international sugar price and an important role in maintaining world sugar production and the sugar industry at a reproduction level.

View full abstract

Each firm faces competition in its industry, therefore to cope with the competition, firms take various competitive strategies. Those strategies can be classified into three categories and these are; overall cost leadership, differentiation, and focus strategies. Particularly important of the three on the recent dairy industry is the differentiation approach. In addition, although a bargain sale is often considered as part of price approach, a cost strategy, it also has differentiation effects like non-price approach such as advertisement effects.
Hence in this paper we analyze the firm-level differentiation and the effects of bargain sale on milk sector from the consumer's perspective. LA/AIDS model is estimated with Scanner Data on data from 291 stores.
The main results are as the following:
1) The milk of Meiji Dairies Corporation is more differentiated than those of Nippon Milk Community and Morinaga Milk Industry.
2) Bargain sales are effective for Meiji Dairies Corporation and Nippon Milk Community. On the other hand, for Morinaga Milk Industry, they do not work well.

View full abstract