Commodity Price Volatility during and after the Economic Crisis – Implications for Romania

Pop, Larisa Nicoleta; Rovinaru, Flavius; Rovinaru, Mihaela

doi:10.2478/jeb-2013-0003

Cited by 7 publications

(7 citation statements)

References 10 publications

(9 reference statements)

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“…Over the last decade or so, commodity markets at the global level have experienced profound turbulence and significant volatility (Pop et al , 2013). It is shown that commodity volatility relates to unpredictability of market fundamentals, and retail price spikes arise when these phenomena occur.…”

Section: Meat Avoidance and Reduction With Retail Price Volatilitymentioning

confidence: 99%

Meat consumption and higher prices

Charlebois

McCormick

Juhasz

2016

BFJ

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Purpose The purpose of this paper is to evaluate if sudden retail price increases for beef products have affected consumers purchasing behaviors. Little research has been conducted that integrates retail price volatility with subdued food consumption motivations. Prior research about consumers’ meat-purchasing habits and systemic concerns linked to sustainability and animal welfare is limited or de-contextualized. This study also attempts to assess if retail price increases have triggered a change in perception of the meat industry, by looking at specific values related to animal protein production and consumption. Design/methodology/approach This study is based on an inductive, quantitative analysis of primary data obtained from a survey on beef consumption. For convenience and validity, all respondents had to be living in Canada for 12 months, and were at least 18 years old. The choice of country is not trivial. First, access to data were convenient for this study. Second, and most importantly, Canada has supply managed commodities that include poultry and chicken. In effect, Canada produces the amount of chicken it needs. Beef production is vulnerable to market volatility. As a result, demand-focussed market conditions for one often influence conditions for the other. Findings Findings indicate that higher prices have compelled 37.9 percent of the sample to reduce or to stop beef consumption altogether in the last 12 months. Beyond the issue of price, sustainability, food safety and health appear to be significant factors, more so than ethics (animal welfare). Results also show that education can be considered as a determinant for sustainable aspects of beef production when prices increase. Age and gender had no statistical significance on survey results. Some limitations are presented and future research paths are suggested. Research limitations/implications Since the sample in this study was mainly composed of consumers based in Canada, the generalizations of the findings should be approached with some caution. The same research should be conducted with consumers from other parts of the Western world to verify if the results can be generalized. Practical implications This survey help the authors to understand some aspects of beef consumption at retail. Findings of this empirical study have implications for future communications to consumers, in that greater emphasis should be given to the connection consumers have with other nutritional alternatives. Since meat consumption in the Western world is intrinsically linked to culinary traditions, behaviors can be challenging to change. Social implications The economic implications of a rapid adoption of a plant-based diet for the agricultural economy would be significant. However, the reality is that according to many studies of consumer behavior, customers still place a higher value on buying and eating meat than on any other food group. Canada’s relationship with animal proteins has deep cultural roots, particularly during holidays and summertime. Originality/value The present study has given important insights into the determinants of meat consumption reduction, a behavior which could both have long-term economic implications for the cattle and beef industries. This paper provides a deeper insight into some socio-economic factors that contribute to slow erosion of meat consumption reduction, and the effects of higher prices at retail. This is, as far as the authors know, likely the first study of its kind.

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Section: Meat Avoidance and Reduction With Retail Price Volatilitymentioning

confidence: 99%

Meat consumption and higher prices

Charlebois

McCormick

Juhasz

2016

BFJ

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“…Given that a larger percentage of ECOWAS population engage in agricultural activity, it is obvious that many face uncertainty in their future income. Interestingly, researchers have pointed out that price fluctuations occasioned by the recent global financial crisis, increased uncertainty and risk and affected the economic status of commodity producers, consumers and traders (Pop, Rovinaru, and Rovinaru 2013). Skinner (1988) suggested that greater uncertainty about future incomes compels consumers to set aside some resources for precautionary purposes.…”

Section: Theoretical Framework and Modelmentioning

confidence: 99%

Low Savings Rates in the Economic Community of West African States (Ecowas): The Role of the Political Instability-Income Interaction

Abu

Karim

Aziz

2013

South East European Journal of Economics and Business

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This paper employs PCSE, OLS and TSLS with random effects to investigate the impact of the political instabilityincome interaction on savings in ECOWAS countries during the period 1996-2012. The empirical evidence illustrates that higher political stability is associated with higher savings and income levels moderate the adverse effect of political instability on savings, indicating that the impact of political instability on savings is higher in low income ECOWAS countries, but lesser at higher levels of income. The paper recommends the promotion of political stability via increases in incomes to raise savings in the ECOWAS region.

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“…economic recession or the importing country experiences a severe crisis. This influence causes a decrease in demand both domestically and abroad (Pop et al, 2013;Rahmadi, 2012). The long-term effect of this problem leads to sluggish exports to other countries (Kumar, 2011).…”

Section: Introductionmentioning

confidence: 99%

Price the Main Condition for Coffee Exports an Analysis With Good News and Bad News Approaches in Indonesia

Anwar

Mariyudi

2021

IJEBAS

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This study aims to analyze the effect of prices and income of the United States of America on 5 superior commodities in Indonesia and see between good news and bad news. The research data uses quarterly data from 2005Q1-2017Q4. The research model uses the TGARCH model. The results show that the income per capita of the United States, the previous price per commodity and previous exports have a positive and significant influence on commodity exports. However, the effect of per capita income on superior rubber commodities was found to have a negative and significant effect. This indicates an increase in foreign income will reduce rubber exports. Extreme volatility shocks occur in palm oil and other agriculture. High volatility is only cocoa commodity. Meanwhile, for coffee and rubber, the volatility is low. 3 commodities that have symmetrical information are coffee, cocoa, and other agriculture. Asymmetric information on palm oil and rubber commodities.

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Commodity Price Volatility during and after the Economic Crisis – Implications for Romania

Cited by 7 publications

References 10 publications

Meat consumption and higher prices

Meat consumption and higher prices

Low Savings Rates in the Economic Community of West African States (Ecowas): The Role of the Political Instability-Income Interaction

Price the Main Condition for Coffee Exports an Analysis With Good News and Bad News Approaches in Indonesia

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