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How can differences in German raw milk prices be explained? An empirical investigation of market power asymmetries

Author

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  • Zavelberg, Yvonne
  • Wieck, Christine
  • Heckelei, Thomas

Abstract

Addressing the increasing concentration of dairy processors in Germany, this paper investigates imperfect competition on the German raw milk market. Using a panel data set of dairy processors’ price and processing data and related market information for the years 2001-2012, the conjectural variation approach allows analyzing market power of dairy processors towards raw milk producers. The paper contributes to the literature by providing an empirical up to date analysis of imperfect competition across and regions in Germany. The estimation results indicate an oligopsonistic market structure in Germany.

Suggested Citation

  • Zavelberg, Yvonne & Wieck, Christine & Heckelei, Thomas, 2015. "How can differences in German raw milk prices be explained? An empirical investigation of market power asymmetries," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205489, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205489
    DOI: 10.22004/ag.econ.205489
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    2. Rizwan Abbas & Gehad Abdullah Amran & Irshad Hussain & Shengjun Ma, 2022. "A Soft Computing View for the Scientific Categorization of Vegetable Supply Chain Issues," Logistics, MDPI, vol. 6(3), pages 1-17, June.

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    Keywords

    Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Industrial Organization;
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