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Price Transmission Analysis: the Case of Milk Products in Russia

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  • Kharin, S.

Abstract

This paper investigates vertical price transmission along the milk supply chain in the Russian market using a vector autoregression model. Monthly farm-gate and retail prices were used in the analysis. Using cointegration technique, we find no empirical evidence for cointegration between farm-gate and retail prices. We show that there is bidirectional Granger causality from farm to retail prices and vice versa. However, response of the farm-gate price to a change in retail price is greater and slightly longer than price response of the retail price to a change at the farm level. The results support the assumption that price changes are not transmitted efficiently from one level to another.

Suggested Citation

  • Kharin, S., 2018. "Price Transmission Analysis: the Case of Milk Products in Russia," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(01).
    • Handle: RePEc:ags:aolpei:276092
    DOI: 10.22004/ag.econ.276092
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    3. Awe, Olushina Olawale & Dias, Ronaldo, . "Comparative Analysis of ARIMA and Artificial Neural Network Techniques for Forecasting Non-Stationary Agricultural Output Time Series," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(4).
    4. Piotr Bórawski & Aneta Bełdycka-Bórawska & Lisa Holden, 2023. "Changes in the Polish Coal Sector Economic Situation with the Background of the European Union Energy Security and Eco-Efficiency Policy," Energies, MDPI, vol. 16(2), pages 1-17, January.
    5. Awe, O. O. & Akinlana, D. M. & Yaya, O. S. & Aromolaran, O., 2018. "Time Series Analysis of the Behaviour of Import and Export of Agricultural and Non-Agricultural Goods in West Africa: A Case Study of Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(2).
    6. Philly Ramoroka & Chiedza L. Muchopa, 2022. "Inter-commodity Price Transmission between Maize and Wheat in South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 57-63, September.

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