The farm-retail price transmission elasticity of Iran's beef sector

Part of : MIBES Transactions : international journal ; Vol.3, No.1, 2009, pages 19-29

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19-29
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Abstract:
Agricultural production marketing has a long history in agricultural economics and marketing literature. Planners, politicians, and agricultural economists have investigated and analyzed market structure, marketing margin, and efficiency in all levels of food markets to improve the function of agriculture and food markets and to increase the farmers' share in consumer food expenditure. Food marketing literature propounds two main necessities : the important role of protein in nourishment and the economic efficiency of marketing levels to investigate market efficiency and marketing margin and to evaluate the livestock production marketing process, especially for beef. In this study, we selected beef product. We estimated marketing margin elasticity (price Transmission Elasticity) with respect to determinants of Beef demand, live animal supply, and marketing services supply. Results show that, ten per cent increase in determinants of Beef demand (such as the price of lamb), live animal supply (such as feed price), and marketing services supply will increase the beef price Transmission by 8.4, 0.90 and -0.79.
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Keywords:
marketing margin, price transmission, farm-retail, beef, determinant factors
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