Farm and Retail Prices in the South African Poultry Industry: Do the Twain Meet?

The study intended to determine the producer (farm)-retail price transmission behavior in the South African poultry industry. At the heart of the study was to desire to establish whether there was symmetry or asymmetry in the price transmission. Using price data from 2000 to 2010 and employing both the Houck and Error Correction Model (ECM) approaches the study found that there was symmetry in the farm-retail price transmission of poultry in South Africa, where a change in farm price of chicken was observed to lead to a similar change in the retail price in South Africa. The price setting system in the poultry industry was further defined by estimating elasticities of price transmission and it was found that retail price is very sensitive to change in farm price, particularly falling prices.


Issue Date:
Sep 01 2011
Publication Type:
Journal Article
DOI and Other Identifiers:
(ISSN #: 1559-2448) (Other)
PURL Identifier:
http://purl.umn.edu/114713
Published in:
International Food and Agribusiness Management Review, Volume 14, Issue 3
Page range:
127-146
Total Pages:
20
JEL Codes:
Q100; Q110; Q120; Q130; Q180
Note:
The IFAMR is the Official Journal of the International Food and Agribusiness Management Association: www.ifama.org
Series Statement:
Volume 14
Issue 3




 Record created 2017-04-01, last modified 2017-05-27

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