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Farm and Retail Food Prices


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  • Freebairn, John W.


This paper analyses the relationship between monthly observations on farm level and retail level prices of three meats, seven fresh vegetables, five fresh fruits, eggs and cereals over the 1970's. A priori reasoning and results of Sim's casuality tests suggest that in most cases changes in farm prices cause changes in retail prices rather than the reverse or a simultaneous relationship. Markup price relationships are estimated. Most of the variation of retail prices is explained by the current farm price, lagged farm prices, a wage variable, and last period's retail price of a substitute product.

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Bibliographic Info

Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

Volume (Year): 52 (1984)
Issue (Month): 02 (August)

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Handle: RePEc:ags:remaae:12264

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Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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Keywords: Demand and Price Analysis;


References listed on IDEAS
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  1. Hernandez-Iglesias, C. & Hernandez-Iglesias, F., 1981. "Causality and the independence phenomenon : The case of the demand for money," Journal of Econometrics, Elsevier, vol. 15(2), pages 247-263, February.
  2. Hancock, Keith, 1976. "The Relation between Changes in Costs and Changes in Product Prices in Australian Manufacturing Industries 1949-50 to 1967-68," The Economic Record, The Economic Society of Australia, vol. 52(137), pages 53-68, March.
  3. Hall, V.B., 1978. "Excess Demand And Expectations Influences On Price Changes In Australian Manufacturing Industry," Working Papers 24, University of Sydney, School of Economics.
  4. Sims, Christopher A, 1972. "Money, Income, and Causality," American Economic Review, American Economic Association, vol. 62(4), pages 540-52, September.
  5. Saunders, Peter G, 1981. "Price Determination in Australian Manufacturing Firms: A Cross-Section Study," Australian Economic Papers, Wiley Blackwell, vol. 20(37), pages 359-75, December.
  6. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-38, July.
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Cited by:
  1. Vere, David T. & Griffith, Garry R., 1995. "Forecasting in the Australian Lamb Industry: the Influence of Alternate Price Determination Processes," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(03), December.
  2. Griffith, G.R. & Piggott, N.E., 1994. "Asymmetry in beef, lamb and pork farm-retail price transmission in Australia," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 10(3), May.


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