The paper deals with the analysis of price transmission in pork meat agri-food chain. The analysis is aimed at the determination of the type of market structure in the chain based on the derived theoretical model and fitted reduced model of price transmission in the form of VECM. Then, impulse-response analysis and decomposition of variance of fitted VECM show the system’s reaction to innovations and the interaction between variables for longer forecast horizons. The results imply that processing stage may exercise oligopsonic power, i.e. the market structure has the type of oligopsony. Impulse-response analysis shows that the system approaches relatively fast the equilibrium and all responses are positive. Moreover, decomposition of variance informs about the increasing role of the wholesale price in the explanation of forecast error variance of agricultural price. Then, it follows from the obtained results (among other) that the pork meat agri-food chain may be characterised as demand-driven. The type of market structure implies that the agricultural support is in this case shared within the vertically related markets and thus is less efficient.
Abstract:The main aim of the paper was a partial analysis of the production potential for pig fattening in the czech republic. This aim was achieved by econometric modelling of the production function, which was specified as a cobb-Douglas function, with the level of average daily increase as the dependent variable, and feed compounds, mortality and weight of new stock as independent variables. The model was specified as a fixed effect model, and the parameters of the function were estimated by the method of least squares dummy variable, based on the ordinary least squares method. Verification of the estimated model was based on a t-test, coefficient of determination, Wald test, autoregressive test, and test of normality distribution of residuals. Subsequently, the estimated function was analysed and significant determinants of production were identified. The behaviour of the production functions was analysed for the average and marginal productions. The functions were also illustrated in graphs of production surfaces, from which the maps of isoproduction functions were derived. The isoproduction functions were used for the final analysis of the potential for pork production. The analysis was based on panel data from 32 farms focused on pig fattening, collected by our own survey. The research indicated significant differences between the surveyed farms. it also declared the most important factor of final production to be, with 99% probability, the new stock weight. The second most important determinant of final production is the feed compound A3, which is used in the final stage of fattening. For maximized production, the farmer should focus on the weight of pigs coming into fattening, choose the biggest one, and introduce the use of the feed compound A3. The results in the submitted paper should also be used by farmers to evaluate their production activity, and to compare their actual output with the theoretical value enumerated by the production function.Key words: production function, maps of isoproduction functions, allocation of production factors, exchange rate, rational stage Supported by the Ministry of Education, Youth and Sports of the czech republic (Projects no. MSM 6046070906 -Economics of resources of czech agriculture and their efficient use in the context of multifunctional agri-food systems).
This paper deals with identifying the main determinants in the poultry agri-food chain in the Czech Republic and examines their relationships. The partial equilibrium model, defined as a seven-equation model in power form, is employed for this purpose. The analysis is based on both time-series and panel data of the main factors in the poultry market. The time-series as well as panel data contain annual data of selected variables for the period from 1995 to 2009. The analysis is focused on supply and demand of poultry meat, specifically on production, consumption and foreign trade in poultry meat in the Czech Republic. Firstly, the main factors influencing the poultry market are determined, then, an appropriate model is employed. The parameters of the model are estimated using the ordinary least squares method in statistical and econometric software. Estimated parameters confirm assumed relationships among the selected variables. Moreover, the long-term tendencies of the selected indicators are proven. Among other, the analysis proves an inertial consumption, the price level as the main factor influencing the consumption and one-way or mutual relationship among the selected variables. The statistical features of the model are satisfied as well – the estimated parameters are statistically significant, the model does not contain, neither the problem of autocorrelation of residuals nor the problem of heteroskedasticity.
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