IDEAS home Printed from https://ideas.repec.org/p/ags/iafepa/235395.html
   My bibliography  Save this paper

Factors affecting changes in prices and farmers' incomes on the Polish pig market

Author

Listed:
  • Hamulczuk, Mariusz
  • Stańko, Stanisław

Abstract

The paper presents market-based mechanisms underlying changes in pig prices and pig meat producers’ income in Poland. The pig prices are determined by supply and demand equilibrium. Farmers are price takers and market price is a parameter which enables them to make economic calculation and verify their individual effectiveness. This paper comprises also an empirical analysis of the factors affecting pig prices developments in 1997-2012. The analysis based on VAR models indicates that pig prices in Poland are determined mostly by the situation on foreign markets. In the long term, only around 30% of pig prices’ vari-ation in Poland depends on national conditions. The Granger causality tests proved that changes in the prices of pork in the marketing chain occur according to a pattern typical of a competitive market – the direction of price signals comes from producer prices towards consumer prices. The farmers margins in pork meat marketing chain have not changed over the analysed period – they fluctuated cyclically and seasonally around the level of 37%. The collapse of pork production in Poland since 2008 has been caused mainly by structural reasons. Pig production in Poland is very fragmented in comparison with the other EU countries thus small economy of scale is reflected in farmers’ low incomes. High cost of production per unit leads to deterioration of the price relationships between foreign and do-mestic prices and lowers demand for domestic pork.

Suggested Citation

  • Hamulczuk, Mariusz & Stańko, Stanisław, 2014. "Factors affecting changes in prices and farmers' incomes on the Polish pig market," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 235395, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    • Handle: RePEc:ags:iafepa:235395
    DOI: 10.22004/ag.econ.235395
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/235395/files/Hamulczuk-Stanko.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.235395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bruce L. Gardner, 1975. "The Farm-Retail Price Spread in a Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 399-409.
    2. Mordecai Ezekiel, 1938. "The Cobweb Theorem," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 52(2), pages 255-280.
    3. Hamulczuk, Mariusz, 2007. "Powiązania cen wieprzowiny pomiędzy rynkiem polskim, duńskim i niemieckim," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 2(17), pages 1-12, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Chaudhry, Muhammad Imran & Katchova, Ani & Miranda, Mario Javier, 2016. "Examining pricing mechanics in the poultry value chain - empirical evidence from Pakistan," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235953, Agricultural and Applied Economics Association.
    3. Peter Buchholz & Friedrich-W. Wellmer & Dennis Bastian & Maren Liedtke, 2020. "Leaning against the wind: low-price benchmarks for acting anticyclically in the metal markets," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(1), pages 81-100, July.
    4. Ronald Cotterill & Leonard Egan & William Buckhold, 2001. "Beyond Illinois Brick: The Law and Economics of Cost Pass-Through in the ADM Price Fixing Case," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(1), pages 45-52, February.
    5. Daniel Hassan & Sylvette Monier-Dilhan, 2003. "Transmission des prix dans la filière fruits: une approche hédonique," Économie rurale, Programme National Persée, vol. 275(1), pages 19-29.
    6. Li, Chenguang & Sexton, Richard J., 2009. "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.
    7. Fausto, Cavalli, 2016. "A cobweb model with alternating demand and supply functions," Working Papers 325, University of Milano-Bicocca, Department of Economics, revised 07 Feb 2016.
    8. Kinnucan, Henry W., 1995. "Some Observations on Measuring Returns to Promotion in Vertical Markets," New Methodologies for Commodity Promotion Economics, October 5-6, 1995, Sacramento, California 279625, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    9. Lence, Sergio H.(Sergio Horacio), 1988. "Transfer costs in agricultural trade: implications for empirical research," ISU General Staff Papers 1988010108000017599, Iowa State University, Department of Economics.
    10. Hugo Pedro Boff, 2004. "The Supply Of Perishable Goods," Econometric Society 2004 Latin American Meetings 306, Econometric Society.
    11. Jean-Bernard Chatelain & Kirsten Ralf, 2020. "How macroeconomists lost control of stabilization policy: towards dark ages," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 27(6), pages 938-982, November.
    12. 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.
    13. Rodrigo Laera, 2020. "El problema teleológico en la raíz del pensamiento económico," Ensayos de Economía 18305, Universidad Nacional de Colombia Sede Medellín.
    14. 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.
    15. Ronald W. Cotterill, 2005. "Antitrust Analysis of Supermarket Retailing: Common Global Concerns that Play Out in Local Markets," Food Marketing Policy Center Research Reports 088, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    16. Ning, Zhuo & Sun, Changyou, 2014. "Vertical price transmission in timber and lumber markets," Journal of Forest Economics, Elsevier, vol. 20(1), pages 17-32.
    17. Akio Matsumoto, 1998. "Do Government Subsidies Stabilize Or Destabilize Agricultural Markets?," Contemporary Economic Policy, Western Economic Association International, vol. 16(4), pages 452-466, October.
    18. Tóth, József & Popovics, Péter András, 2006. "Az ártranszmisszió és az árak aszimmetrikus alakulása Magyarország tejvertikumában [Price transmission and asymmetric price development in the vertical structure]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 349-364.
    19. Thomas Barré, 2011. "Price expectations and price dynamics: the case of the rice sector in developing Asia," Working Papers hal-00630711, HAL.
    20. Kauffman, Daniel, 1984. "An Evaluation of the Potential for a Market in Hog Contracts," Agricultural Economic Report Series 201342, Michigan State University, Department of Agricultural, Food, and Resource Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iafepa:235395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ierigpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.