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Agricultural supply response to international food prices and price volatility: a crosscountry panel analysis

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  • Haile, Mekbib G.
  • Kalkuhl, Matthias

Abstract

This article estimates global supply response for key agricultural commodities. The findings reveal that, while higher output prices are incentives to improve global crop supply, output price volatility plays otherwise. Depending on respective crop, the results indicate that own price supply elasticities range from about 0.05 to 0.35. The findings suggest that output price-risk has negative correlations with crop supply, implying that farmers shift land, other inputs and yield improving investments away to crops with less volatile prices. The recent output price volatility seems to significantly reduce production of wheat and – to a lesser extent – rice.
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  • Haile, Mekbib G. & Kalkuhl, Matthias, 2013. "Agricultural supply response to international food prices and price volatility: a crosscountry panel analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149630, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:149630
    DOI: 10.22004/ag.econ.149630
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    2. Kalkuhl, Matthias, 2014. "How Strong Do Global Commodity Prices Influence Domestic Food Prices in Developing Countries? A Global Price Transmission and Vulnerability Mapping Analysis," Discussion Papers 168591, University of Bonn, Center for Development Research (ZEF).
    3. Mosadegh Sedghy, Bahareh & Tamini, Lota Dabio & Lambert, Remy, 2018. "Effects of Price Insurance Programs on Supply Response: A Case Study of Corn Farmers in Quebec," MPRA Paper 93816, University Library of Munich, Germany, revised 30 Nov 2018.
    4. Kalkuhl, Matthias, 2014. "How Strong Do Global Commodity Prices Influence Domestic Food Prices? A Global Price Transmission Analysis," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169798, Agricultural and Applied Economics Association.
    5. Donato, Romano & Carraro, Alessandro, 2015. "Modelling Acreage, Production and Yield Supply Response to Domestic Price Volatility," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207278, Italian Association of Agricultural and Applied Economics (AIEAA).
    6. Nestor Le Clech & Carmen Fillat‐Castejón, 2017. "International aggregate agricultural supply for grain and oilseed: The effects of efficiency and technological change," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 569-585, September.
    7. Cancino, Susan & Escalante, Giovanni Orlando Cancino, 2021. "Aplicación del modelo de ajuste parcial nerloviano para estimar la elasticidad de la oferta de plátano en Colombia," Revista Tendencias, Universidad de Narino, vol. 22(2), pages 57-75, July.

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