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How can the differences in German raw milk prices be explained? An empirical investigation of market power asymmetries and other price determinants

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  • Zavelberg, Yvonne
  • Wieck, Christine
  • Heckelei, Thomas

Abstract

Addressing competition in Germany’s dairy sector, this paper investigates imperfect competition on the raw milk market. By using the conjectural variation approach to determine dairy processors market power towards raw milk producers, regions in Germany with a high degree of imperfect competition can be detected. Therefore a panel data set of dairy processor's price data and related federal state level farm structural and market information data is used which also allows to analyze other price determinants like structural change and spatial aspects on raw milk prices.

Suggested Citation

  • Zavelberg, Yvonne & Wieck, Christine & Heckelei, Thomas, 2014. "How can the differences in German raw milk prices be explained? An empirical investigation of market power asymmetries and other price determinants," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182952, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182952
    DOI: 10.22004/ag.econ.182952
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    References listed on IDEAS

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    4. Huck, Petra & Salhofer, Klaus & Tribl, Christoph, 2006. "Spatial Competition of Milk Processing Cooperatives in Northern Germany," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25633, International Association of Agricultural Economists.
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    6. Steve McCorriston, 2002. "Why should imperfect competition matter to agricultural economists?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(3), pages 349-371, July.
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