IDEAS home Printed from https://ideas.repec.org/p/ags/saea17/252680.html
   My bibliography  Save this paper

Price Transmission along the Supply Chain of Strawberries in Mexico

Author

Listed:
  • Aguilar Candelas, Oscar J.
  • Arana Coronado, Jaime
  • Trejo-Pech, Carlos O.
  • Martínez Damián, Miguel Ángel

Abstract

By combining data from multiple sources, we model supply and demand of strawberry in Mexico for the 1970-2013 period. The main purpose of the study is to measure transmission of prices in this sector. Producer prices, wholesaler prices, exporter prices, and consumer prices are components of the model. Our three-stage least squares regression results show, consistent with the literature, that the pass-through of price changes is imperfect; that is, a price change at the producer level is not fully transmitted to domestic consumers and exporters. (Dickey-Fuller Augmented and Ljung-Box tests were performed to ensure efficiency of estimators.) Furthermore, a change in producer prices has a higher impact on the domestic market than in the exports market, in percentage basis. However, higher price mark-ups in the export market compared to domestic market’s make exporting more attractive to Mexican strawberry producers. Results of this study may have important implications as both supply and exports of strawberry from Mexico have experienced high growth in the last decade, with more than 90% of strawberry being exported to the U.S. According the Mexican Department of Agriculture, volume harvested of strawberry grew 2.14 times from 2003 to 2014 while exports did 2.88 times.

Suggested Citation

  • Aguilar Candelas, Oscar J. & Arana Coronado, Jaime & Trejo-Pech, Carlos O. & Martínez Damián, Miguel Ángel, 2017. "Price Transmission along the Supply Chain of Strawberries in Mexico," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252680, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea17:252680
    DOI: 10.22004/ag.econ.252680
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/252680/files/Submitted%20article%20SAE%20Mobile%202017.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.252680?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Arnade, Carlos & Kuchler, Fred, 2015. "Measuring the Impacts of Off-Season Berry Imports," Economic Research Report 229201, United States Department of Agriculture, Economic Research Service.
    2. Drabik, Dušan & Ciaian, Pavel & Pokrivčák, Ján, 2016. "The effect of ethanol policies on the vertical price transmission in corn and food markets," Energy Economics, Elsevier, vol. 55(C), pages 189-199.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ondřej Filip & Karel Janda & Ladislav Krištoufek, 2018. "Ceny biopaliv a souvisejících komodit: analýza s použitím metod minimální kostry grafu a hierarchických stromů [Prices of Biofuels and Related Commodities: an Analysis Using Methods of Minimum Span," Politická ekonomie, Prague University of Economics and Business, vol. 2018(2), pages 218-239.
    2. Szenderak, J. & Jambor, A. & Potori, N., 2018. "Apples versus oranges: does interdependence between the European Union juice concentrate markets exist?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277511, International Association of Agricultural Economists.
    3. Karel Janda & Ladislav Krištoufek & Barbora Schererová & David Zilberman, 2021. "Price transmission in biofuel-related global agricultural networks," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(10), pages 399-408.
    4. Eissa, Mohamad Abdelaziz & Al Refai, Hisham, 2019. "Modelling the symmetric and asymmetric relationships between oil prices and those of corn, barley, and rapeseed oil," Resources Policy, Elsevier, vol. 64(C).
    5. Filip, Ondrej & Janda, Karel & Kristoufek, Ladislav & Zilberman, David, 2019. "Food versus fuel: An updated and expanded evidence," Energy Economics, Elsevier, vol. 82(C), pages 152-166.
    6. Karel Janda & Ladislav Kristoufek, 2019. "The relationship between fuel and food prices: Methods, outcomes, and lessons for commodity price risk management," CAMA Working Papers 2019-20, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    7. Pal, Debdatta & Mitra, Subrata K., 2017. "Time-frequency contained co-movement of crude oil and world food prices: A wavelet-based analysis," Energy Economics, Elsevier, vol. 62(C), pages 230-239.
    8. Swanson, Andrew C., 2022. "Corn, Carbon, and Competition: The Low Carbon Fuel Standard's Effects on Imperfectly Competitive Corn Markets," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322442, Agricultural and Applied Economics Association.
    9. He, Qiao-Chu & Yang, Yun & Bai, Lingquan & Zhang, Baosen, 2020. "Smart energy storage management via information systems design," Energy Economics, Elsevier, vol. 85(C).
    10. repec:ags:aaea22:335864 is not listed on IDEAS
    11. Areola Hernandez, Jose & Uddin, Gazi Salah & Dutta, Anupam & Ahmed, Ali & Kang, Sang Hoon, 2020. "Are ethanol markets globalized or regionalized?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 551(C).
    12. Carpio, Lucio Guido Tapia, 2019. "The effects of oil price volatility on ethanol, gasoline, and sugar price forecasts," Energy, Elsevier, vol. 181(C), pages 1012-1022.
    13. Karel Janda & Ladislav Krištoufek, 2019. "The Relationship Between Fuel and Food Prices: Methods and Outcomes," Annual Review of Resource Economics, Annual Reviews, vol. 11(1), pages 195-216, October.
    14. Wang, Xin & Lim, Michael K. & Ouyang, Yanfeng, 2017. "Food-energy-environment trilemma: Policy impacts on farmland use and biofuel industry development," Energy Economics, Elsevier, vol. 67(C), pages 35-48.
    15. Capitani, Daniel Henrique Dario & Tonin, Julyerme M. & Cruz, Jose Cesar, 2017. "Integration and hedging efficiency between the Brazilian and the U.S. ethanol markets," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258520, Agricultural and Applied Economics Association.
    16. Beckman, Jayson & Dyck, John & Heerman, Kari, 2017. "The Global Landscape of Agricultural Trade, 1995-2014," Economic Information Bulletin 265270, United States Department of Agriculture, Economic Research Service.
    17. Revoredo-Giha, Cesar & Dogbe, Wisdom, 2023. "An empirical analysis of the purchases of soft fruit in Scotland," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334512, Agricultural Economics Society - AES.

    More about this item

    Keywords

    Agribusiness; Demand and Price Analysis;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saea17:252680. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.