Price Transmission in the Pineapple Market – What Role for Organic Fruit?
AbstractAs consumers’ demand for organic products and especially organic food grows, organic certification for tropical fruit is increasingly promoted in many developing countries. Certified organic pineapple exports only started taking off after 2005 and are rapidly increasing. The organic and conventional fresh pineapple value chains are dominated by certification standards and large multinational companies respectively. The two markets, however, still differ greatly in size. We analyze if this influences the price structure in these markets. Specifically, the paper attempts to single out the existence and direction of causality between the conventional and organic pineapple price using the European pineapple market as an example. We study spatial price transmission, i.e. the difference in prices between the markets for organic and conventional pineapple. The results indicate the dependence of organic market price movements on conventional ones. On the contrary, the conventional market is not affected by this niche market
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1626.
Length: 25 pages
Date of creation: Jun 2010
Date of revision:
price transmission; private standards; organic agriculture; organic markets;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-06-11 (Agricultural Economics)
- NEP-ALL-2010-06-11 (All new papers)
- NEP-MKT-2010-06-11 (Marketing)
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