PRICE TRANSMISSION ANALYSIS IN PORK SUPPLY CHAIN IN SERBIA

Marija Jeremić; Stanislav Zekić; Bojan Matkovski; Danilo Đokić; Žana Jurjević

doi:10.5937/ekoPolj2002417J

Authors

Marija Jeremić University of Novi Sad, Faculty of Economics in Subotica, Subotica http://orcid.org/0000-0002-5748-4005
Stanislav Zekić University of Novi Sad, Faculty of Economics in Subotica, Subotica http://orcid.org/0000-0003-3872-1332
Bojan Matkovski University of Novi Sad, Faculty of Economics in Subotica, Subotica http://orcid.org/0000-0003-2563-3843
Danilo Đokić University of Novi Sad, Faculty of Economics in Subotica, Subotica http://orcid.org/0000-0002-7962-4910
Žana Jurjević University of Novi Sad, Faculty of Economics in Subotica, Subotica http://orcid.org/0000-0002-3809-7923

DOI:

https://doi.org/10.5937/ekoPolj2002417J

Keywords:

Pork, Chain, Transmission, Asymmetry

Abstract

As the pork supply chain was perceived through three level of chain: agricultural sector, processing and distribution sector, the main objective of this paper was the estimation of the vertical price transmission in the pork supply chain in the Republic of Serbia for period 2008-2015. The analysis of the price transmission was related on the presence of the asymmetry and was estimated with AECM model. The results indicated the presence of the negative asymmetry in the price transmission and one of the main causes of the presence of asymmetry was the abuse of the market power by processing sector, i.e. slaughtering industry.

Downloads

Download data is not yet available.

References

1.Abdulai, A. (2002). Using threshold cointegration to estimate asymmetric price transmission in the Swiss pork market. Applied Economics, 34(6), 679-687.
2. Bakucs, L. Z., & Ferto, I. (2005). Marketing margins and price transmission on the Hungarian pork meat market. Agribusiness, 21(2), 273-286.
3. Blažková, I., & Syrovátka, P. (2012). Price formation and transmission along the food commodity chain. Acta Universitatis Agriculrurae Et Silviculturae Mendelianae Brunensis, 15(4), 31-36.
4. Boyd, M. S., & Brorsen, B. W. (1988). Price Asymmetry in the U.S. Pork Marketing Channel. North Central Journal of Agricultural Economics, 10(1), 103-109.
5. Čechura, L., & Šobrova L. (2008). The price transmission in pork meat agri-food chain. Agricultural Economics, 54(2), 77-84.
6. Coleman, W., Grant, W., & Josling, J. (2004). Agriculture in the new global economy. Northampton: Edward Edgar Publishing Inc.
7. Djurić, I., & Petković, D. (2013). Vertical price transmission along the food supply chain: Serbian pork market". In D. S. Cvijanovic (Ed.): International Scientific Conference. Sustainable Agriculture and Rural Development in Terms of the Republic of Serbia Strategic Goals Realization within the Danube Region, Achieving regional competitiveness (pp. 298-313). Beograd.
8. Djuric, I., & Puskaric, A. (2015). Impact of the Russian import bans the Serbian pork exports and prices. In: J. Subic, B. Kuzman, & A. Jean Vasile (Ed.), Sustainable Agriculture and Rural Development in Terms of the Republic of Serbia Strategic Goals Realization Within the Danube Region, (pp. 173-188). Beograd.
9. ECORYS (2010). Study on the Competitiveness of the European Meat Processing Industry. Luxembourg: European Commission.
10. Eurostat (2016). Available at http://ec.europa.eu/eurostat/statistics-explained/extensions/EurostatPDFGenerator/getfile.php?file=2001:4170:2000:1:0:0:0:31_1467653901_65.pdf, (referred on January, 2016).
11. GEA info Centar (2016). Gea center database. Beograd: Gea Centar.
12. Goodwin, B. K., & Harper D. C. (2000). Price transmission, Threshold Behaviour, and Asymmetric Adjustment in the U.S. Pork Sector. Journal of Agricultural and Applied Economics, 32(3), 543-553.
13. Guillen, J., & Franquesa, R. (2010). Testing for market power in the Spanish meat market: Price transmission elasticity and asymmetry using econometric models. International Journal Computational Economics and Econometrics, 1(3/4), 294-308.
14. Holst, C., & von Cramon-Taubadel, S. (2014). Trade, Market Integration and Spatial Price Transmission on EU Pork Markets following Eastern Enlargement. In: 54th Annual Conference, Goettingen: German Association of Agricultural Economists.
15. Houck, J.P. (1977). An approach to specifying and estimating nonreversible functions. American Journal of Agricultural Economics, 59, 570-572.
16. Jensen, J., & Møller, A. S. (2007). Vertical price transmission in the Danish food marketing chain. Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.485.7809&rep=rep1&type=pdf (referred on January 2016)
17. Jeremic, M., Zekic, S., & Matkovski, B. (2016). Economic characteristic of pig production in Serbia. Agroekonomika, 70, 11-18. [In Serbian: Jeremic, M., Zekic, S., & Matkovski, B. (2016). Ekonomske osobenosti proizvodnje svinja u Srbiji. Agroekonomika, 70, 11-18.]
18. Karantininis, K., Katarkylidis, K., & Persson M. (2011). Price transmission in the Swidish pork chain: asymmetric nonlinear ARDL. In: EAAE 2011 Congress Change and Uncertainty: Challenges for Agriculture, Food and Natural resources. The Hague: European Association of Agricultural Economists (EAAE).
19. Liu, X. (2011). Horizontal Price Transmission of the Finnish Meat Sector with Major EU Players. In: 2011 International Congress. Zurich; European Association of Agricultural Economists.
20. Meyer, A. (2004). Measuring market integration in the presence of transaction costs—a threshold vector error correction approach. Agricultural Economics, 31(2-3), 327-334.
21. Ministry of Agriculture and Environmental Protection Republic of Serbia (MAEP), (2014). Republic of Serbia IPARD Programme for 2014-2020. Available at: http://www.minpolj.gov.rs/wp-content/uploads/datoteke/korisna_dokumenta/IPARD_II_Program_ENG_05072017.pdf (referred on March, 2016).
22. Nestrov-Bizonj, J., Kovljenic, M., & Erdelji, T. (2015). The Strategy for Agriculture and Rural Development of the Republic of Serbia in the Process of its Accession to the European Union. Strategic Management, 20(3), 57-66.
23. OANDA (2015). Average Exchange Rates. Available at OANDA: http://www.oanda.com/currency/average (referres Feb, 2016).
24. OECD (2006). Supermarkets and the Meat Supply Chain: The economic impact of food retailers on farmers, processors and consumers. Paris: OECD
25. Popovic, R. (2014). Livestock in the Republic of Serbia: Agricultural Census in 2012: Agriculture in the Republic of Serbia. Statistical Office of the Republic of Serbia, Belgrade. [In Serbian: Popovic, R. (2014). Stočarstvo u Republici Srbiji: Popis poljoprivrede 2012: Poljoprivreda u Republici Srbiji. Republički zavod za statistiku: Beograd.]
26. Pjanić, M., Vuković, B. & Mijić, K. (2018). Analysis of the Market Concentration of Agricltural Enterprises in AP Vojvodina. Startegic Management, 23(4), 40-45.
27. Progressive magazine (2015). Available at http://progressivemagazin.rs/online/mesne-preradevine/ (referred on March, 2016).
28. Purcell, T. (1999). Forecasting Marketing Margins in the Australian pig industry. Annual Australian Agricultural and Resources Economics Society Conference. Christchurch
29. Rumankova, L. (2012). Time Series Properties and Their Influence on the Results of Price Transmission – Case Study of the Czech Pork Market. Available at: http://ageconsearch.umn.edu/bitstream/146284/2/agris_on-line_2012_4_special_rumankova.pdf (referred on Jan, 2016).
30. Sanjuán, A. I., & Gil, J. M. (1998). Price transmission analysis: A flexible methodological approach applied to European hog markets. In: 38 Congress of the European Regional Science Association. Vienna.
31. Statistical Office of the Republic of Serbia - SORS (2017). Available at http://webrzs.stat.gov.rs/ (referred on Feb, 2017).
32. Statistical Office of the Republic of Serbia - SORS. Monthly Statistical Bulletin (6/2008.-2/2016): Available at http://www.stat.gov.rs (referred on Feb, 2017).
33. Trienekens, J., Petersen, B., & Wognum, N., Brinkman, D. (2009). European pork chains: Diversity and quality challenges in consumer-oriented production and distribution. The Netherlands: Wageningen Academic Publisher.
34. Vavra, P., & Goodwin, B. K. (2005). Analysis of Price Transmission along the Food Chain. OECD Food, Agriculture and Fisheries Papers, No. 3. Available at http://www.oecd-ilibrary.org/agriculture-and-food/analysis-of-price-transmissionalong-the-food-chain_752335872456 (referred on Feb, 2017).
35. Von Cramon-Taubadel, S. (1998). Estimating asymmetric price transmission with the error correction representation: An application to the German pork market. European Review of Agricultural Economics, 25(1), 1-18.
36. Ward, R. W. (1982). Asymmetry in Retail, Wholesale and Shipping Point Prices for Fresh Fruits and Vegetables. American Journal of Agricultural Economics, 64(2), 205-212.
37. Wohlgenant, M. K. (2001). Marketing Marrgins: Empirical analysis. In: i. B. Rausser, Handbook of Agricultural Economics, Vol 1, pp. 934-970. Amsterdam: Elsevier Science B.V.
38. Wolffram, R. (1971). Positivistic measures of aggregate supply elasticities: some new approaches-some critical notes. American Journal of Agricultural Economics, 53, 356-359.