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Some approaches to the analysis of market structure's impact in milk commodity chain

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  • Novak, Petr

Abstract

The nowadays development in agribusiness can be characterised as shifting of power to the finalising levels and distribution in food commodity chains, which influence as well as form competitive environment of farm and also food-processing companies. The dependence of producers (farmers) on finalising stage is increasing, as well as the risk is transferred and the marked power is enforced in food commodity chains. Those factors are changing proportions, conditions of approach and share of individual stages of commodity chain on value added launched in final product. Possible approach to the identification of market power within food commodity chains is the approach based on price transmission analysis; inelastic price transmission (especially in case of price growth) can imply the existence of market power at certain market level of the commodity chain. This approach - with the distinction of dairy products with low or high value added - is applied on dairy commodity chain in conditions of the Czech Republic.

Suggested Citation

  • Novak, Petr, 2007. "Some approaches to the analysis of market structure's impact in milk commodity chain," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7822, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa104:7822
    DOI: 10.22004/ag.econ.7822
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    References listed on IDEAS

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    1. S McCorriston & CW Morgan & AJ Rayner, 2001. "Price transmission: the interaction between market power and returns to scale," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(2), pages 143-159, June.
    2. Steve McCorriston, 2002. "Why should imperfect competition matter to agricultural economists?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(3), pages 349-371, July.
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    Cited by:

    1. Popovic, R. & Radovanov, B., 2010. "Price Transmission In Serbian Dairy Chain," Economics of Agriculture, Institute of Agricultural Economics, vol. 57(4).
    2. Barbora Dudová & Věra Bečvářová, 2015. "The Character of Price Transmission Within Milk Commodity Chain in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(3), pages 887-892.

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