Oligopoly and price transmission in Turkey’s fluid milk market

Hasan Tekguc

No 61087, 114th Seminar, April 15-16, 2010, Berlin, Germany from European Association of Agricultural Economists

Abstract: Farmers and consumers suspect that processing firms abuse their power in the milk marketing chain. We employ threshold autoregressive and moment threshold autoregressive tests and contrary to expectations find evidence of a downward trend in UHT milk real price without a corresponding decline in farm-gate prices. The downward trend coincides with increased competition in the dairy industry and with the growing market share of the formal sector at the expense of the informal sector. Major dairy processing firms expand their market share and still enjoy healthy profits thanks to increasing returns to scale in processing and distribution in a growing market.

Keywords: Agricultural and Food Policy; Farm Management; Land Economics/Use (search for similar items in EconPapers)
Pages: 26
Date: 2010-04
New Economics Papers: this item is included in nep-agr, nep-ara, nep-com and nep-cwa
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Working Paper: Oligopoly and price transmission in Turkey's fluid milk market (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa114:61087

DOI: 10.22004/ag.econ.61087

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