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The Imlact of the Russian Import Ban on Domestic Pig Meat Prices in Russia

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  • Djuric, Ivan
  • Gotz, Linde
  • Glauben, Thomas

Abstract

In this paper we analyze the impact of the Russian ban on import of pig meat originating in the EU on the domestic pig meat price developments in Russia. We use a regime-switching price transmission model in order to identify possible changes in the long-run equilibrium between the pig meat prices of Russia and its main non-EU trading partners. Our results indicate the reduction of transaction costs in pig meat trade between Russia and its main non-EU trading partners, followed by the increase in transmission of price changes in the long-run. Though, our results indicate completely opposite results concerning domestic price relations between wholesale and end consumer pig meat prices in Russia. Overall, faced with the scarcity of pig meat on the domestic market, Russian consumers bear the biggest burden from the ban in the medium term by being faced with the significant increase in end consumer pig meat prices.

Suggested Citation

  • Djuric, Ivan & Gotz, Linde & Glauben, Thomas, 2015. "The Imlact of the Russian Import Ban on Domestic Pig Meat Prices in Russia," 2015 Conference, August 9-14, 2015, Milan, Italy 211579, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211579
    DOI: 10.22004/ag.econ.211579
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    References listed on IDEAS

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    1. Ivan Djuric & Linde Götz & Thomas Glauben, 2015. "Are Export Restrictions an Effective Instrument to Insulate Domestic Prices Against Skyrocketing World Market Prices? The Wheat Export Ban in Serbia," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 215-228, April.
    2. Will Martin & Kym Anderson, 2012. "Export Restrictions and Price Insulation During Commodity Price Booms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 422-427.
    3. Götz, L. & Djuric, I. & Glauben, T., 2015. "Price Damping and Price Insulating Effects of Wheat Export Restrictions in Kazakhstan, Russia and Ukraine," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50, March.
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    Cited by:

    1. Duric, I. & Glauben, T. & Zaric, V., 2018. "Impact of the Russian agricultural import ban on the Serbian pork exports and domestic price development along the pork value chain," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277201, International Association of Agricultural Economists.
    2. Mikhail Krivko & Luboš Smutka, 2020. "Trade Sanctions and Agriculture Support in Milk and Dairy Industry: Case of Russia," Sustainability, MDPI, vol. 12(24), pages 1-17, December.
    3. Mikhail Krivko & Luboš Smutka, 2021. "Agricultural and Foodstuff Trade between EU28 and Russia: (Non)Uniformity of the Russian Import Ban Impact Distribution," Agriculture, MDPI, vol. 11(12), pages 1-15, December.

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    Keywords

    Food Consumption/Nutrition/Food Safety; International Relations/Trade;

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