Econometric models of export demand for Australian dairy food (milk dry and butter) are developed
and estimated in this paper using unrestricted error correction modelling procedure and data for the
period 19752000. The findings indicate that, in the short run As well as in the long run, export
demand for Australian milk dry and butter in Thailand decreases when Australia's export price relative
to that of competing countries increases. The estimated long run relative price elasticity of export
demand for Australian milk dry and butter in Thailand are, -2.75 and -1.13, respectively. Export
demand for Australian butter in Thailand declines when the Thai baht depreciates against the
Australian dollar, and the estimated long run exchange rate elasticity of demand is -6.34