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Modeling The Farm-Retail Price Spread For Beef

Author

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  • Wohlgenant, Michael K.
  • Mullen, John D.

Abstract

A new model for the farm-retail price spread, which accounts for both farm supply and retail demand changes, is introduced. This model is applied to beef, and its empirical performance relative to the markup pricing formulation is evaluated using nonnested testing procedures. The results are consistent with theory and indicate the markup pricing model is misspecified.

Suggested Citation

  • Wohlgenant, Michael K. & Mullen, John D., 1987. "Modeling The Farm-Retail Price Spread For Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(2), pages 1-7, December.
    • Handle: RePEc:ags:wjagec:32229
    DOI: 10.22004/ag.econ.32229
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    References listed on IDEAS

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    Cited by:

    1. Peter Slade, 2018. "The Effects of Pricing Canadian Livestock Emissions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(2), pages 305-329, June.
    2. repec:ags:aesdoc:307242 is not listed on IDEAS
    3. Traub, Lulama Ndibongo & Jayne, Thomas S., 2004. "The Effects of Market Reform on Maize Marketing Margins in South Africa," Food Security International Development Working Papers 54570, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Cattaneo, Andrea & Federighi, Giovanni & Vaz, Sara, 2021. "The environmental impact of reducing food loss and waste: A critical assessment," Food Policy, Elsevier, vol. 98(C).
    5. Mojtaba ABASSIAN & Farhad SHIRANI BIDABADI & Hussein EBRAHIMZADEH, 2010. "Efficiency of date marketing system in Sistan & Bluchestan of Iran; a marketing margin approach," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(1), pages 43-50.
    6. Tey, (John) Yeong-Sheng & Randy, Stringer & Wendy, Umberger, 2009. "Farm-retail price spread for pork in Malaysia," MPRA Paper 14532, University Library of Munich, Germany.
    7. Richards, Timothy J. & Patterson, Paul M., 2003. "A Bilateral Comparison Of Fruit And Vegetable Consumption: U.S And Canada," 2003 Annual meeting, July 27-30, Montreal, Canada 21891, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Traub, Lulama Ndibongo & Jayne, T.S., 2008. "The effects of price deregulation on maize marketing margins in South Africa," Food Policy, Elsevier, vol. 33(3), pages 224-236, June.
    9. Robert Romain & Maurice Doyon & Mathieu Frigon, 2002. "Effects of state regulations on marketing margins and price transmission asymmetry: Evidence from the New York City and upstate New York fluid milk markets," Agribusiness, John Wiley & Sons, Ltd., vol. 18(3), pages 301-315.
    10. Kinnucan, Henry W., 1997. "Middlemen behaviour and generic advertising rents in competitive interrelated industries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(2), pages 1-17.
    11. Mkhabela, Thulasizwe S. & Nyhodo, Bonani, . "Farm and Retail Prices in the South African Poultry Industry: Do the Twain Meet?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(3), pages 1-20.
    12. Dhoubhadel, Sunil P. & Stockton, Matt, "undated". "Who Suffers Most when Disease Outbreaks and Food Recalls Happen? The Case of Mad Cow Disease in the United States," Cornhusker Economics 306605, University of Nebraska-Lincoln, Department of Agricultural Economics.
    13. Griffith, Garry R. & Moore, Walter B., 1991. "Livestock Production Policies And Meat Processing Margins: The Case Of New Zealand, 1967-1988," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(01), pages 1-28, April.
    14. Parker, Douglas D. & Zilberman, David, "undated". "Price Transmission Across Marketing Levels In A Hedonic Framework," 1990 Annual meeting, August 5-8, Vancouver, Canada 270982, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Morales, L. Emilio, . "The Effects of International Price Volatility on Farmer Prices and Marketing Margins in Cattle Markets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(3).
    16. Oral Capps Jr. & Sergio Colin‐Castillo & Manuel A. Hernandez, 2013. "Do Marketing Margins Change with Food Scares? Examining the Effects of Food Recalls and Disease Outbreaks in the U.S. Red Meat Industry," Agribusiness, John Wiley & Sons, Ltd., vol. 29(4), pages 426-454, September.
    17. Buhr, Brian L., 1993. "A Quarterly Econometric Simulation Model Of The U.S. Livestock And Meat Sector," Staff Papers 13465, University of Minnesota, Department of Applied Economics.
    18. Zulu-Mbata, Olipa & Jayne, Thomas S. & Kirsten, Johann F., 2016. "Analysis of farm-to-retail maize marketing margins in Zambia," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246966, African Association of Agricultural Economists (AAAE).
    19. Wohlgenant, Michael K. & Haidacher, RichardC., 1991. "Approaches to Modeling Retail-Farm Price Spreads and Derived Demand Relationships for Food Commodities: A Selected, Annotated Bibliography," Staff Reports 278572, United States Department of Agriculture, Economic Research Service.
    20. Li, Chenguang & Sexton, Richard J., "undated". "Impacts of Retailers’ Pricing Strategies for Produce Commodities on Farmer Welfare," 2009 Conference, August 16-22, 2009, Beijing, China 51720, International Association of Agricultural Economists.
    21. Li, Chenguang & Sexton, Richard J., 2013. "Grocery-Retailer Pricing Behavior with Implications for Farmer Welfare," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-18, August.
    22. Skold, Karl Durwood, 1989. "The integration of alternative information systems: an application to the Hogs and Pigs report," ISU General Staff Papers 1989010108000010239, Iowa State University, Department of Economics.
    23. Tey, (John) Yeong-Sheng, 2009. "Symmetry in farm-retail price transmission: pork in Malaysia," MPRA Paper 16693, University Library of Munich, Germany.

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