EconPapers    
Economics at your fingertips  
 

Global commodity price peaks and governmental interventions: The case of the wheat-to-bread supply chain in Serbia - Who benefited and who lost?

Ivan Djuric (), Linde Gotz and Thomas Glauben ()

No 125142, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: We analyze how the governmental market interventions during the commodity price peaks 2007/2008 and 2010/2011 have affected the transmission of price changes along the wheat-to-bread supply chain in Serbia. We aim to investigate if consumers benefitted from the wheat and flour export restrictions, which were supplemented by governmental wheat purchases in the domestic market, or if other members along the supply chain were able to gain advantage. Our analysis of price dynamics between wheat and flour prices within a Markov Switching Vector Error Correction Model suggests that the mills increased their margin and thus profits in the aftermath of the governmental interventions. The simulation of bread production costs makes evident that bakeries and even more retailers profited substantially from the crisis policy. We find that consumers benefitted from the governmental interventions only to a limited degree and experienced overall welfare losses. Compared with laissez-faire policy, the bread price increase was dampened by the governmental market interventions only at the beginning of the crisis. The additional strong bread price increase in April 2008 indirectly resulted from the governmental wheat purchases from the Serbian market.

Keywords: Agricultural and Food Policy; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 25
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ageconsearch.umn.edu/record/125142/files/DjuricGotzGlauben.pdf (application/pdf)

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:ags:aaea12:125142

DOI: 10.22004/ag.econ.125142

Access Statistics for this paper

More papers in 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2020-11-04
Handle: RePEc:ags:aaea12:125142