Vertical price formation in the Finnish food chain

Hanna Karikallio, Kyösti Arovuori and Perttu Pyykkonen

No 58037, 113th Seminar, September 3-6, 2009, Chania, Crete, Greece from European Association of Agricultural Economists

Abstract: In this paper we analyse, how food prices have been spread between different actors in the Finnish food chain in 2000-2007. In addition, we compare price formation in Finland to eight other countries. We argue that the main factors explaining different food price behaviour between different countries especially in Europe are; the level of processing in the consumed food products, domestic competition, availability of substitute products, domestic consumption structure and consumers’ preferences. Our results show, that retailers’ share of food prices has increased in Finland, while both the farmers’ and processors’ share has been decreasing. This development differs significantly between countries. Yet, it seems that the lack of competition gives retail sector a significant advantage in the food chain, especially when food processors are facing increased competition on from imports.

Keywords: Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 17
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa113:58037

DOI: 10.22004/ag.econ.58037

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