Export restrictions – Do consumers really benefit? The wheat-to-bread supply chain in Serbia

Ivan Djuric and Linde Götz ()

Food Policy, 2016, vol. 63, issue C, 112-123

Abstract: Our approach combines price transmission and gross margin analysis at different stages of the wheat-to-bread supply chain. Results suggest that the effects of export restrictions on the end consumer prices for bread, and thus food price inflation, heavily depend on the price behavior of the intermediates. In contrast to theory, consumers in Serbia experienced welfare losses despite comprehensive governmental market interventions. In particular, consumers were confronted with increasing flour and bread prices, which cannot be fully explained by increasing production costs, whereas mills, bakeries and retailers increased their profits. Thus, export controls in combination with high price volatility in the supply chain have to be considered as a further factor driving food price inflation.

Keywords: Export restrictions; Gross margin; Markov-switching model; Price transmission; Serbia; Supply chain (search for similar items in EconPapers)
JEL-codes: C22 I31 P22 P23 Q11 Q18 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:63:y:2016:i:c:p:112-123

DOI: 10.1016/j.foodpol.2016.07.002

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