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The Transformation Of Market Players On The Demand-Side Of The Grain Market

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  • Kemenyne Horvath, Zsuzsanna

Abstract

The aim of the study is to review the vertical and horizontal reshuffling that took place in a specific area of the Hungarian grain product cycle, i.e. raw material production, and its effect on the demand-side power structure. The answers derived from questionnaires and in-depth interviews allowed the classification of buyers using cluster analysis, and also the modeling of their decisions during the price negotiation. The completed analysis shows us that on the grain market, price leaders are primarily among the large trading companies and holdings, which can be attributed to their size, storage capacity, logistical capabilities and strategy. Processing (mills, feed mixers, seed-sellers), integrator, retail and other companies on the grain market are price-adaptive. The intervention price level affects the price negotiations and market strategies of demand-side players significantly, which suggests that in the future, the modification of the intervention system may prove to be a main force behind vertical and horizontal changes. Structural changes can be further emphasized by the switch to the SPS system and the increased grain demand resulting from the commissioning of bioethanol-producing plants.

Suggested Citation

  • Kemenyne Horvath, Zsuzsanna, 2008. "The Transformation Of Market Players On The Demand-Side Of The Grain Market," Bulletin of the Szent Istvan University 43242, Szent Istvan University, Faculty of Economics and Social Sciences.
    • Handle: RePEc:ags:siubul:43242
    DOI: 10.22004/ag.econ.43242
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