Farm and retail prices in the South African poultry industry : do the twain meet?
Date
2011
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
International Food and Agribusiness Management Association
Abstract
The study intended to determine the producer (farm)-retail price transmission behavior in the
South African poultry industry. At the heart of the study was to desire to establish whether there
was symmetry or asymmetry in the price transmission. Using price data from 2000 to 2010 and
employing both the Houck and Error Correction Model (ECM) approaches the study found that
there was symmetry in the farm-retail price transmission of poultry in South Africa, where a
change in farm price of chicken was observed to lead to a similar change in the retail price in
South Africa. The price setting system in the poultry industry was further defined by estimating
elasticities of price transmission and it was found that retail price is very sensitive to change in
farm price, particularly falling prices.
Description
CITATION: Mkhabela, T. & Nyhodo, B. 2011. Farm and retail prices in the South African poultry industry : do the twain meet? International Food and Agribusiness Management Review, 14(3):127-146.
The original publication is available at http://www.ifama.org
The original publication is available at http://www.ifama.org
Keywords
Poultry industry -- South Africa, Poultry prices -- South Africa, Poultry industry -- Economic aspects -- South Africa
Citation
Mkhabela, T. & Nyhodo, B. 2011. Farm and retail prices in the South African poultry industry : do the twain meet? International Food and Agribusiness Management Review, 14(3):127-146.