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Price Transmission Along the Canadian Beef Supply Chain and the Impact of BSE

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  • Saha, Bishnu
  • Mitura, Verna

Abstract

This study investigates the dynamics of price transmission between the Canadian beef markets along the supply chain and the impact of bovine spongiform encephalopathy (BSE) on prices. Retail price models are estimated for the provinces accounting for the major share of national demand, while farm price models are estimated for the beef cattle producing provinces. A model for the processing level is also estimated with national industrial prices of beef and provincial farm prices of beef cattle. The results indicate that retail beef prices in the major consuming provinces adjust either faster or at a greater magnitude to increases in industrial prices than to decreases. Furthermore, industrial prices adjust faster and at a greater magnitude in response to rising farm prices of beef cattle in Ontario and Quebec than when they fall. The impact of BSE on retail prices has been small and negative for Alberta and Ontario, and positive for Quebec and British Columbia. The impact of BSE on industrial prices has also been small and positive. On the contrary, strong and sustained negative influence of BSE on farm prices is evident in the results for the beef cattle producing provinces.

Suggested Citation

  • Saha, Bishnu & Mitura, Verna, 2008. "Price Transmission Along the Canadian Beef Supply Chain and the Impact of BSE," Agriculture and Rural Working Paper Series 54823, Statistics Canada.
    • Handle: RePEc:ags:scarwp:54823
    DOI: 10.22004/ag.econ.54823
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    References listed on IDEAS

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    Cited by:

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    2. Fan, Jiaping & Anders, Sven & Qiu, Feng, 2022. "Vertical Price Transmission in the Canadian Beef Industry: Does the Canada-US Exchange Rate Matter?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 23(1), June.

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