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Mark-up Volatility in Food Value Chains: Evidence from France and Italy

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  • Maria Garrone
  • Johan Swinnen

Abstract

This paper estimates firm-level mark-ups and their volatility along the agri-food value chain using the methodology of De Loecker and Warzynski (2012). We estimate mark-ups of farmers, processors, wholesalers and retailers, how they change over time, and their volatility. We use detailed micro-level data from companies from Italy and France for the period 2006-2014. We find that farmers have a significantly higher volatility of mark-ups than other agents in the agri-food value chain, such as food processors, wholesalers and retailers. The volatility is negatively related with firms size in all sectors, and especially in agriculture.

Suggested Citation

  • Maria Garrone & Johan Swinnen, 2018. "Mark-up Volatility in Food Value Chains: Evidence from France and Italy," LICOS Discussion Papers 40318, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    • Handle: RePEc:lic:licosd:40318
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