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Effect on the International Price of Maize on the Retail Price of Broiler Chicken in Costa Rica

Author

Listed:
  • Molina, Javier Paniagua
  • Thompson, Johanna Solórzano
  • Navarro, David Barboza

Abstract

This paper presents the results of an investigation carried out with the objective of estimating the impact of variations in maize international price on the poultry meat domestic price in Costa Rica. For the transmission of international price to CIF import price of maize (main ingredient in the chicken diet), a distributed lag autoregressive model was used after testing for cointegration of time series. The selling price to the final consumer was modeled with a reduced-form structural model. The results show how the international price of maize has an important impact on the formation of domestic chicken meat prices and requires that this be considered in the design of policies to reduce the dependence on the international price, which has a negative impact on the price in cases of unexpected increases or shocks.

Suggested Citation

  • Molina, Javier Paniagua & Thompson, Johanna Solórzano & Navarro, David Barboza, 2022. "Effect on the International Price of Maize on the Retail Price of Broiler Chicken in Costa Rica," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 10(4), October.
    • Handle: RePEc:ags:ijfaec:329631
    DOI: 10.22004/ag.econ.329631
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    References listed on IDEAS

    as
    1. Martinez, Stephen W., 1999. "Vertical Coordination in the Pork and Broiler Industries: Implications for Pork and Chicken Products," Agricultural Economic Reports 34031, United States Department of Agriculture, Economic Research Service.
    2. Gustavo Rossini & Edith Depetris Guiguet, 2008. "Transmisión Vertical de Precios en el Sector de la Carne Vacuna en Argentina," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 23(2), pages 3-19, Diciembre.
    3. Martin Ravallion, 1986. "Testing Market Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 102-109.
    4. Abdulai, Awudu, 2000. "Spatial price transmission and asymmetry in the Ghanaian maize market," Journal of Development Economics, Elsevier, vol. 63(2), pages 327-349, December.
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