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Retail Dairy Prices Fluctuate with the Farm Value of Milk AgEcon
Stewart, Hayden; Blayney, Donald P..
Farm milk prices in the United States fluctuated throughout the 2000-2009 decade. Dairy farmers, industry pundits, and policymakers all reacted with much alarm. One point of concern has been the response of retail prices to farm price volatility. This study investigates farm-to-retail price transmission for two major dairy products – whole milk and Cheddar cheese – in the 2000s. Results show that price shocks at the farm gate were transmitted asymmetrically to retail. However, in order to best identify the nature of the transmission process, it is important to fit alternative model specifications.
Tipo: Conference Paper or Presentation Palavras-chave: Dairy prices; Error correction models; Price transmission; Demand and Price Analysis.
Ano: 2010 URL: http://purl.umn.edu/60947
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Retail Dairy Prices Fluctuate with the Farm Value of Milk AgEcon
Stewart, Hayden; Blayney, Donald P..
Farm milk prices tend to be volatile. Dairy farmers, industry pundits, and policymakers further tend to react to price volatility with alarm. One point of concern is the response of retail prices. This study investigates farm-to-retail price transmission in the 2000s for whole milk and cheddar cheese. Results show that price shocks at the farm gate are transmitted with delay and asymmetry to retail. Differences in the nature of price transmission for whole milk and cheddar cheese prices are also identified.
Tipo: Journal Article Palavras-chave: Asymmetric price transmission; Cointegration; Dairy prices; Error correction models; Demand and Price Analysis; Livestock Production/Industries.
Ano: 2011 URL: http://purl.umn.edu/117772
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