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Price transmission dynamics for quality‐certified food products: A comparison between conventional and organic fluid milk in Italy

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  • Federico Antonioli
  • Monia Ben Kaabia
  • Filippo Arfini
  • José M. Gil

Abstract

Despite the vast number of works investigating price transmission (PT) processes in diverse agrifood markets, very little has been said about quality‐differentiated products. In this paper, we compare the conventional and organic fluid milk sectors in Italy to better understand the economic organization and functioning of one of the most important agrifoods in Italy. Using a unique dataset featuring processor and retail (scanner) prices for the two types of milk, we estimate Momentum‐Threshold Autoregressive models to account for asymmetric price movements in both sectors, but the PT results are eventually symmetric. The Vector Error Correction Model estimations and Impulse Response Functions analysis provide significant insights into the differences between the two markets. [EconLit citations: Q130, Q110, C590]

Suggested Citation

  • Federico Antonioli & Monia Ben Kaabia & Filippo Arfini & José M. Gil, 2019. "Price transmission dynamics for quality‐certified food products: A comparison between conventional and organic fluid milk in Italy," Agribusiness, John Wiley & Sons, Ltd., vol. 35(3), pages 374-393, July.
    • Handle: RePEc:wly:agribz:v:35:y:2019:i:3:p:374-393
    DOI: 10.1002/agr.21568
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    Cited by:

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    2. Omid Zamani & Thomas Bittmann & Jens‐Peter Loy, 2024. "Does the internet bring food prices closer together? Exploring search engine query data in Iran," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(2), pages 688-715, June.
    3. Lindström, Hanna, 2021. "Price transmission for organic and conventional milk products in Sweden," HFI Working Papers 22, Institute of Retail Economics (Handelns Forskningsinstitut).
    4. Hugo Ferrer-Pérez & Fadi Abdelradi & José M. Gil, 2020. "Geographical Indications and Price Volatility Dynamics of Lamb Prices in Spain," Sustainability, MDPI, vol. 12(7), pages 1-17, April.
    5. Valentina Maria Merlino & Stefano Massaglia & Simone Blanc & Filippo Brun & Danielle Borra, 2022. "Differences between Italian specialty milk in large-scale retailing distribution," Economia agro-alimentare, FrancoAngeli Editore, vol. 24(2), pages 1-28.
    6. Judith Hillen, 2021. "Vertical price transmission in Swiss dairy and cheese value chains," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    7. Antonioli, Federico & Santeramo, Fabio Gaetano, 2022. "On Policy Interventions and Vertical Price Transmission: The Italian Milk Supply Chain Case," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(2), May.
    8. Daniele Cavicchioli, 2018. "Detecting Market Power Along Food Supply Chains: Evidence and Methodological Insights from the Fluid Milk Sector in Italy," Agriculture, MDPI, vol. 8(12), pages 1-22, December.
    9. Lindström, Hanna, 2021. "Price transmission for organic and conventional milk products in Sweden," Umeå Economic Studies 999, Umeå University, Department of Economics.
    10. Elena Claire Ricci & Massimo Peri & Lucia Baldi, 2019. "The Effects of Agricultural Price Instability on Vertical Price Transmission: A Study of the Wheat Chain in Italy," Agriculture, MDPI, vol. 9(2), pages 1-14, February.

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