1. VERTICAL PRICE TRANSMISSION ALONG THE FOOD SUPPLY CHAIN: SERBIAN PORK MARKET.
- Author
-
Djurić, Ivan and Petković, Danijela
- Subjects
PORK industry ,SWINE sales & prices ,SUPPLY chains ,LIVESTOCK carcasses - Abstract
In this paper we analyze the price transmission between Serbian pig producers and processors (slaughterhouses) during the recent global commodity price peak in 2010-2011. For the vertical price transmission analysis we choose highly flexible Markov-switching vector errorcorrection model which allows us to identify the nonlinear price adjustments. Our preliminary results indicate that the price changes in the live pig prices are completely transmitted to the carcasses prices. Furthermore, we found that the processors are increasing their margin disproportionally, especially during the episodes of the extremely high live pig prices, wrongfully justified by the increase in input costs. [ABSTRACT FROM AUTHOR]
- Published
- 2013