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Price transmission in the milk sectors of Poland and Hungary


  • Zoltán Bakucs
  • Jan Fałkowski
  • Imre Fertő


Rapid and thorough changes have recently taken place in the dairy supply chain in the whole of Central and Eastern Europe. Growing concerns have been expressed that these changes may negatively affect farmers' relative position vis-a-vis the downstream industry, owing to market power exercised by the latter. This article investigates the price transmission mechanism in two countries from the region, Poland and Hungary, and contrasts the results with dairy market organisations specific to these countries. Using cointegrated vector autoregression and controlling for potential structural breaks, it is shown that Polish milk prices, unlike Hungarian ones, are characterised by short-term and long-term asymmetries. We discuss a number of potential explanations for these results, and consider, among others, differences between the dairy chain structures and the role of FDI.

Suggested Citation

  • Zoltán Bakucs & Jan Fałkowski & Imre Fertő, 2012. "Price transmission in the milk sectors of Poland and Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 24(3), pages 419-432, October.
  • Handle: RePEc:taf:pocoec:v:24:y:2012:i:3:p:419-432
    DOI: 10.1080/14631377.2012.705474

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    Cited by:

    1. Bakucs, Lajos Zoltan & Jambor, Attila, 2014. "Consumer price volatility in the New Member States: Insights from the agri-food sector," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 169793, European Association of Agricultural Economists.
    2. Drabik, Dušan & Ciaian, Pavel & Pokrivčák, Ján, 2016. "The effect of ethanol policies on the vertical price transmission in corn and food markets," Energy Economics, Elsevier, vol. 55(C), pages 189-199.

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