| In this paper we analyse price transmission for the carrot, parsley, tomato, green pepper and potato markets. Although there is a dual farm structure dominated by small individual farms, our results imply that price information flows from the producer to the retail level for potatoes, parsley and carrots. Our results also suggest that farmers do not merely accept prices, but can actually influence market prices. Tomato and green pepper prices have large transmission elasticities, and causality runs from the retail to producer level. It therefore follows that tomato and green pepper producers tend to accept prices and that the sector’s prices are determined by upper market levels (processors, wholesalers, retailers). These results are reinforced by the fact... |
