Price transmission in hog and feed markets of China

Zhou, De; Koemle, Dieter

doi:10.1016/s2095-3119(14)60995-3

Cited by 31 publications

(17 citation statements)

References 19 publications

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“…Wang and Chen (2009) investigated price transmission in the Chinese pork sector. Zhou and Koemle (2015) identified a long‐term stable equilibrium relationship between three prices: hog price, corn price, and soybean price. They showed that it takes about eleven months to achieve 50% adjustments toward long‐run disequilibrium.…”

Section: Literature Reviewmentioning

confidence: 99%

The Dynamics and Volatility of Prices in a Vertical Sector

Chavas¹,

Pan²

2019

American J Agri Economics

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This paper studies the evolving distribution of prices in a vertical sector in the presence of market cycles. It investigates the dynamic linkages between farm and retail prices with an application to the Chinese pork sector. The econometric approach relies on a quantile autoregressive (QAR) model that provides a flexible representation of the dynamics of price volatility. It investigates the presence and nature of price cycles and their implications for price transmission. We document that the marketing margin is more sensitive to changes in consumer income than in feed cost. In addition, rising feed cost increases the amplitude of the cycle while higher consumer income increases the period of the cycle.

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Section: Literature Reviewmentioning

confidence: 99%

The Dynamics and Volatility of Prices in a Vertical Sector

Chavas¹,

Pan²

2019

American J Agri Economics

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“…To assess market integration, researchers can use error correction models (ECM), because such analysis can provide evidence of long-term relationships. Many studies have demonstrated that the LOP is valid in the context of market integration, including those of Mohanty et al (Mohanty, Meyers, & Smith, 1999), Muwanga and Snyder (Muwanga & Snyder, 1997), Katrakilidis (Katrakilidis, 2008), Elberg (Elberg, 2015), Baquedano and Liefert (Baquedano & Liefert, 2014), Ravallion (Ravallion, 1985), Sekhar (Sekhar, 2012), Zhou and Koemle (Zhou & Koemle, 2015), and Xu et al (Xu, Dong, LI, & LI, 2011). In the rice market, price integration is supported by many studies, such as those of Emokaro and Ayantoyinbo (Emokaro & Ayantoyinbo, 2014), and Ohen and Abang (Ohen & Abang, 2011).…”

Section: Introductionmentioning

confidence: 99%

Integration of Rice Prices at Producer, Wholesaler, and Urban and Rural Consumer Markets with Paddy Prices at the Farm Gate

Makbul

Ratnaningtyas

Pradono

2019

ABR

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In this study, we analyzed the integration of rice prices at the producer, wholesaler, and urban and rural consumer markets with paddy prices at the farm gate, which has important implications for rice pricing policy. A high price policy can lead to high paddy prices, and thereby increase the profits of paddy farms. Although this policy can generally ensure food security, it may have the effect of decreasing rice consumption. A high-price rice policy can, nevertheless, be beneficial if rice prices are sufficiently well integrated with paddy prices, which can simultaneously enhance paddy farm profits and ensure domestic food security. For the purposes of this study, we examined monthly price data obtained from the Central Bureau of Statistics of Indonesia for the period from January 2013 to December 2016. Using this data, we applied an error correction model (ECM) to integrate the rice prices at the producer, wholesaler, and urban and rural consumer markets with paddy prices at the farm gate. The results showed that producer, wholesaler, and rural consumer market rice prices were significantly integrated with paddy prices at the farm gate. Moreover, if necessary, the government can intervene in these markets to stabilize paddy prices to maintain food security.

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“…As can be seen from Figure 1 Research on the pig cycle in the United States also usually relies on the price ratio of pigs-to-corn (Holt and Craig [43]). China's pig cycle and the pig-to-corn ratio cycle also show considerable consistency (Zhou and Koemle [44]), as shown in Figure 2.…”

Section: Problem Description and Modelingmentioning

confidence: 87%

A New Equilibrium Strategy of Supply and Demand for the Supply Chain of Pig Cycle

Fang

2020

Mathematical Problems in Engineering

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The pig market had experienced a cycle of price rise and fall, also known as the “pig cycle.” This paper analyzes the fluctuation relationship between pig price, pig supply, and pork demand, constructs a system dynamics model of the pig industry by decomposing the structure of the pig supply chain, and then discusses the causes of “pig cycle,” as well as the supply chain management strategy and industrial policy, to stabilize the pig industry market. Research shows that reducing the cost of pig breeding, countercyclical adjustment, and government macrocontrol can effectively reduce the fluctuation of pig prices. Among them, reducing the pig breeding cost is the most effective long-term strategy to stabilize the pig price.

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Price transmission in hog and feed markets of China

Cited by 31 publications

References 19 publications

The Dynamics and Volatility of Prices in a Vertical Sector

The Dynamics and Volatility of Prices in a Vertical Sector

Integration of Rice Prices at Producer, Wholesaler, and Urban and Rural Consumer Markets with Paddy Prices at the Farm Gate

A New Equilibrium Strategy of Supply and Demand for the Supply Chain of Pig Cycle

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