Price Transmission, International Trade, and Asymmetric Relationships in the Dutch Agri‐Food Chain

Daphne M.I. Verreth, Grigorios Emvalomatis, Frank Bunte, Ron Kemp and Alfons Oude Lansink ()

Agribusiness, 2015, vol. 31, issue 4, 521-542

Abstract: ABSTRACT This paper analyses the response of producer, wholesale, retail, and international trade prices to shocks in prices in upstream or downstream stages in the Dutch onion and red pepper supply chains. The analysis allows for asymmetric adjustment among food prices when the wholesale or retail stages exert oligopoly power. The study provides a theoretical underpinning of the relationship between domestic and international prices. Asymmetries in price transmission are examined using the Houck as well as the error‐correction approaches. The impulse response analyses show that red pepper prices return to their long‐term equilibria relatively quickly, whereas onion prices settle at a new equilibrium after a price shock. Market power in the wholesale sector affects the responses of onion prices but has little or no effect on the responses of red pepper prices. Market power in the retail sector does not affect the onion prices or the red pepper prices. Analysis of weekly price data over the period from 2005 to 2008 suggests asymmetric adjustment in producer‐wholesale and international‐producer prices in the Dutch onion supply chain. The results also show asymmetric transmission between producer and retail prices for red pepper.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1002/agr.21420

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:31:y:2015:i:4:p:521-542

Access Statistics for this article

Agribusiness is currently edited by Ronald W. Cotterill

More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().