{"title":"Market Structure of the Feed Industry in Germany: Causing Asymmetric Spatial Price Transmission?","authors":"H. Schulte, O. Musshoff","doi":"10.1515/jafio-2018-0007","DOIUrl":null,"url":null,"abstract":"Abstract Over the last couple of years, the production amount of feed and the market concentration of the feed industry vastly increased in North-Western Germany. This development might lead to asymmetric price transmission of feed between regions in Germany because feed markets in other regions grow slower and therefore decline in relative volume and importance. To analyze this development, the objective of the study was to quantify price relationships of pig, hens and calves feed prices between Western Lower Saxony, Eastern Lower Saxony and Westphalia. Assuming Western Lower Saxony as the central market and using monthly price observation from 2007 until 2017, the results show that the feed prices were co-integrated across regions and type of feed. The results show a tendency of asymmetric price transmission for pig feed between Western Lower Saxony and Eastern Lower Saxony but this was not statistically significant at the 5 % level. Furthermore, we also tested the influence of the feed scandals dioxin in pig feed and mold in imported maize from Serbia, but we could not estimate a pattern of price adjustments between regions according to the feed scandals. Summarizing the results, we came to the conclusion that feed prices might be perfectly transmitted across regions and independently from feed scandals and type of feed.","PeriodicalId":52541,"journal":{"name":"Journal of Agricultural and Food Industrial Organization","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2018-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1515/jafio-2018-0007","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Agricultural and Food Industrial Organization","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1515/jafio-2018-0007","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Business, Management and Accounting","Score":null,"Total":0}
引用次数: 2
Abstract
Abstract Over the last couple of years, the production amount of feed and the market concentration of the feed industry vastly increased in North-Western Germany. This development might lead to asymmetric price transmission of feed between regions in Germany because feed markets in other regions grow slower and therefore decline in relative volume and importance. To analyze this development, the objective of the study was to quantify price relationships of pig, hens and calves feed prices between Western Lower Saxony, Eastern Lower Saxony and Westphalia. Assuming Western Lower Saxony as the central market and using monthly price observation from 2007 until 2017, the results show that the feed prices were co-integrated across regions and type of feed. The results show a tendency of asymmetric price transmission for pig feed between Western Lower Saxony and Eastern Lower Saxony but this was not statistically significant at the 5 % level. Furthermore, we also tested the influence of the feed scandals dioxin in pig feed and mold in imported maize from Serbia, but we could not estimate a pattern of price adjustments between regions according to the feed scandals. Summarizing the results, we came to the conclusion that feed prices might be perfectly transmitted across regions and independently from feed scandals and type of feed.
期刊介绍：
The Journal of Agricultural & Food Industrial Organization (JAFIO) is a unique forum for empirical and theoretical research in industrial organization with a special focus on agricultural and food industries worldwide. As concentration, industrialization, and globalization continue to reshape horizontal and vertical relationships within the food supply chain, agricultural economists are revising both their views of traditional markets as well as their tools of analysis. At the core of this revision are strategic interactions between principals and agents, strategic interdependence between rival firms, and strategic trade policy between competing nations, all in a setting plagued by incomplete and/or imperfect information structures. Add to that biotechnology, electronic commerce, as well as the shift in focus from raw agricultural commodities to branded products, and the conclusion is that a "new" agricultural economics is needed for an increasingly complex "new" agriculture.
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