Oligopoly and price transmission in Turkey’s fluid milk market
AbstractFarmers and consumers suspect that processing firms abuse their power in the milk marketing chain. We employ threshold autoregressive and moment threshold autoregressive tests and contrary to expectations find evidence of a downward trend in UHT milk real price without a corresponding decline in farm-gate prices. The downward trend coincides with increased competition in the dairy industry and with the growing market share of the formal sector at the expense of the informal sector. Major dairy processing firms expand their market share and still enjoy healthy profits thanks to increasing returns to scale in processing and distribution in a growing market.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 114th Seminar, April 15-16, 2010, Berlin, Germany with number 61087.
Date of creation: Apr 2010
Date of revision:
Dairy; Turkey; Oligopsony; TAR; M-TAR; Agricultural and Food Policy; Farm Management; Land Economics/Use;
Other versions of this item:
- Hasan Tekgüç, 2013. "Oligopoly and Price Transmission in Turkey's Fluid Milk Market," Agribusiness, John Wiley & Sons, Ltd., vol. 29(3), pages 293-305, 06.
- Hasan Tekguc, 2010. "Oligopoly and price transmission in Turkey's fluid milk market," Working Papers 2011-03, Mardin Artuklu Univeristy, Department of Economics.
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-05-22 (Agricultural Economics)
- NEP-ALL-2010-05-22 (All new papers)
- NEP-ARA-2010-05-22 (MENA - Middle East & North Africa)
- NEP-COM-2010-05-22 (Industrial Competition)
- NEP-CWA-2010-05-22 (Central & Western Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aydin Celen & Tarkan Erdogan & Tarkan Erdogan, 2005. "Fast Moving Consumer Goods: Competitive Conditions and Policies," ERC Working Papers 0503, ERC - Economic Research Center, Middle East Technical University, revised Jun 2005.
- von Cramon-Taubadel, Stephan, 1998. "Estimating Asymmetric Price Transmission with the Error Correction Representation: An application to the German Pork Market," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(1), pages 1-18.
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