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Price transmission in the pineapple market: What role for organic fruit?

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  • Kleemann, Linda
  • Effenberger, Alexandra

Abstract

As 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.

Suggested Citation

  • Kleemann, Linda & Effenberger, Alexandra, 2010. "Price transmission in the pineapple market: What role for organic fruit?," Kiel Working Papers 1626, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1626
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    Cited by:

    1. Drugova, Tatiana & Pozo, Veronica & Curtis, Kynda, 2018. "Forecasting Organic Wheat Prices: Do Conventional Prices Play a Role?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 49(1), March.
    2. Nadine Würriehausen & Rico Ihle & Sebastian Lakner, 2015. "Price relationships between qualitatively differentiated agricultural products: organic and conventional wheat in Germany," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 195-209, March.
    3. Sharon Raszap Skorbiansky & Michael K Adjemian, 2021. "Not All Thin Markets Are Alike: The Case of Organic and Non‐genetically Engineered Corn and Soybeans," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 117-133, February.
    4. Tanushree Haldar & A. Damodaran, 2022. "Can cooperatives influence farmer’s decision to adopt organic farming? Agri-decision making under price volatility," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5718-5742, April.

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    More about this item

    Keywords

    Price transmission; private standards; organic agriculture; organic markets;
    All these keywords.

    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, Innovation, 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

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