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Fresh Vegetable Price Linkage Between Grower/Shippers, Wholesalers And Retailers

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  • Brooker, John R.
  • Eastwood, David B.
  • Carver, Brian T.
  • Gray, Morgan D.

Abstract

This study focused on the transmission of price adjustments between grower/shippers and wholesalers and between wholesale handlers and retailers of nine fresh vegetables (only the results associated with bell peppers are reported in this paper). Results among the nine vegetable products were not consistent with respect to the magnitude of adjustments or the time periods involved in the adjustments. In response to wholesale price changes, upward price adjustments at the retail level occur more quickly than do downward price adjustments. Price transmission relationships also varied among the vegetable products between the wholesaler and grower. Overall, the results indicate that factors in addition to changes in upstream prices are impacting retailers' and wholesalers' pricing decisions.

Suggested Citation

  • Brooker, John R. & Eastwood, David B. & Carver, Brian T. & Gray, Morgan D., 1997. "Fresh Vegetable Price Linkage Between Grower/Shippers, Wholesalers And Retailers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(1), pages 1-58, February.
    • Handle: RePEc:ags:jlofdr:26599
    DOI: 10.22004/ag.econ.26599
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    References listed on IDEAS

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    1. Dale M. Heien, 1980. "Markup Pricing in a Dynamic Model of the Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 10-18.
    2. Ronald W. Ward, 1982. "Asymmetry in Retail, Wholesale, and Shipping Point Pricing for Fresh Vegetables," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(2), pages 205-212.
    3. James P. Houck, 1977. "An Approach to Specifying and Estimating Nonreversible Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(3), pages 570-572.
    4. Henry W. Kinnucan & Olan D. Forker, 1987. "Asymmetry in Farm-Retail Price Transmission for Major Dairy Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 285-292.
    5. Daniel H. Pick & Jeffrey Karrenbrock & Hoy F. Carman, 1990. "Price asymmetry and marketing margin behavior: An example for California-Arizona citrus," Agribusiness, John Wiley & Sons, Ltd., vol. 6(1), pages 75-84.
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    1. Götz, L. & von Cramon-Taubadel, S., 2008. "Asymmetric Price Transmission in the Israeli Citrus Export Sector in the Aftermath of Liberalization," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    2. Santeramo, Fabio Gaetano & von Cramon-Taubadel, Stephan, 2016. "On perishability and Vertical Price Transmission: empirical evidences from Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(2), September.
    3. Götz, Linde & von Cramon-Taubadel, Stephan & Kachel, Yael, 2014. "Vertical Price Transmission in the International Fresh Fruit and Vegetable Supply Chain: Israeli Grapefruit Exports to the EU after Export Liberalisation," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(2), pages 1-22, May.
    4. Stephan von Cramon-Taubadel & Jens-Peter Loy & Jochen Meyer, 2006. "The impact of cross-sectional data aggregation on the measurement of vertical price transmission: An experiment with German food prices," Agribusiness, John Wiley & Sons, Ltd., vol. 22(4), pages 505-522.

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