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Assessment of Beef Market Price Transmission in Tehran province

Author

Listed:
  • Behjati, Tohid
  • Mortazavi, Seyyed Abolgasem
  • Abdolahi, Babak

Abstract

Price of agricultural products is one of the most important tools of resource allocation in national economics and also it has an identifying role in the agricultural economics of the countries. Another important issue which affects directly on the prices and market is the method of price transmission of beef market. The method of price transmission of beef market reveals the activity manner of effective agents in the market. In this study which is a case study, price transmission of beef market in Tehran price has been examined through Error Correction Model during the price of 1380 – 88. The results show that the price transmission of beef market in Tehran is symmetrical in long term. On the other hand price transmission of beef from farm to slaughterhouses or from farm to retail stores is asymmetrical, but it is symmetrical from slaughterhouses to retail stores. Over all the increases of price of cows in the farms increase the price of beef in the slaughterhouses and also the decreases of price of cows in the farms decrease the price of beef in the slaughterhouses. In fact, the marketing agents of beef (slaughterhouses, dealers, producer's transportation and storage) benefit from transmission of beef from one part of the market to the other get parts. Increasing of investing in production and slaughterhouses, organizing informational agencies and calculating the cost price of each kilogram and observing the price of selling and buying cows by marketing agents are some suggested ways of this research.

Suggested Citation

  • Behjati, Tohid & Mortazavi, Seyyed Abolgasem & Abdolahi, Babak, 2011. "Assessment of Beef Market Price Transmission in Tehran province," 2011 ASAE 7th International Conference, October 13-15, Hanoi, Vietnam 290643, Asian Society of Agricultural Economists (ASAE).
    • Handle: RePEc:ags:asae11:290643
    DOI: 10.22004/ag.econ.290643
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