The role of expected protein levels in determining the impact of protein premiums and discounts: a note

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 e xpected protein level. This article extends these results to consider the i mpact of a protein premium and discount system which is not centred on a gr ower's existing expected protein level. The article suggests that the growe r's existing expected protein level plays a crucial role in determining the impact of the system.