Pricing to market behaviour of India's high value agri‐food exporters: an empirical analysis of major destination markets

Varma, Poornima; Akash, Issar

doi:10.1111/agec.12215

Cited by 5 publications

(4 citation statements)

References 18 publications

(26 reference statements)

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“…Although early PTM studies focused on the manufacturing industries, there is increasing literature on agri-food products mainly on grain markets: Japonica rice (Griffith and Mullen, 2001), Canadian (Lavoie, 2005), Russian (Pall et al, 2011(Pall et al, , 2013 wheat sector. Furthermore, the wheat export in Kazakhstan, Russia and Ukraine (Gafarova et al, 2015), in the European Union (Dawson et al, 2014), as well as Indian cereals and rice industries (Varma and Issar, 2016) were already investigated. Until now, the research on processed food products is still limited (Saghaian and Reed, 2004;Varma and Issar, 2016;Fedoseeva and Werner, 2016), especially in the case of the bottled wine product.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Furthermore, the wheat export in Kazakhstan, Russia and Ukraine (Gafarova et al, 2015), in the European Union (Dawson et al, 2014), as well as Indian cereals and rice industries (Varma and Issar, 2016) were already investigated. Until now, the research on processed food products is still limited (Saghaian and Reed, 2004;Varma and Issar, 2016;Fedoseeva and Werner, 2016), especially in the case of the bottled wine product. Krugman (1986) highlighted the relationship between French wine prices on the US market.…”

Section: Literature Reviewmentioning

confidence: 99%

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Pricing behaviour of the New World wine exporters

Balogh

2019

IJWBR

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Purpose In recent decades, New World winemakers have increased their wine export to European markets and became considerable market players in the EU. Therefore, this paper aims to explore whether the major New World wine producers are able to exploit its market power at European destination markets. Design/methodology/approach The paper applies the pricing-to-market (PTM) model of trade in respect of asymmetric effect of exchange rate changes by using monthly bilateral wine data between January 2000 and December 2016. Findings First, there is evidence of PTM in three New World wine exporters, namely, Chile, South Africa and the USA. Chile was able to apply price discrimination across Danish, German, Dutch and the British wine markets. Second, South Africa set their prices in Belgian, Dutch and Swedish markets, while the USA discriminated their wine prices in Denmark and Sweden. In contrast, this advantage was not observable in the case of Argentina and Australia. Third, the local-currency price stability was explored in Chilean wine import prices (exported to Belgium, the Czech Republic), South African wine prices (exported to France, Denmark, Germany), in US wine prices (sold in Germany and the UK). Furthermore, the analysis of the asymmetric effects of exchange rate changes suggests that depreciation of the exporter’s currency relative to the Euro had not a significant impact on EU wine import prices. On the whole, the estimated pricing to market model indicates that a non-competitive pricing behaviour of New World exporters was limited and was rather due to the market-specific characteristics. Research limitations/implications The research provides multiple advice for New World wine producers. First, in general, European consumers do not pay an extra price for the New World bottled wines. Second, only Chilean, South African and North American wine exporters can expect higher prices for its wines from European buyers only. Moreover, European wine markets are fairly competitive where New World wine exporters do not have significant market dominance. Therefore, New World wine exporters should strengthen its wine marketing and branding strategy to gain higher market share in Europe and to attract attention to its wines. Finally, exchange rates relative to Euro should be continuously monitored by the New World wine exporters because it might deviate the wine export prices significantly. Originality/value The study applies the pricing-to-market model to major New World wine exporters on the European Union’s destination market. The paper also makes valuable contributions to the wine literature by testing the asymmetric effects of exchange rate changes on wine import prices. It analyses the nature of price discrimination, whether it is market-specific or exchange rate influenced, or both.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Pricing behaviour of the New World wine exporters

Balogh

2019

IJWBR

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“…By this conceptual framework, price discrimination by an exporting firm can be confirmed by testing whether price fully reflects exchange rate changes. Analysis of ERPT has covered export items from major exporting countries such as the United States, Germany, Japan, and South Korea [17,[19][20][21][22] and some studies have focused on crops exporters such as the United States, Australia, Canada, Russia, and India [18,[23][24][25][26][27].…”

Section: Analytical Frameworkmentioning

confidence: 99%

“…Many empirical studies on the market structure of international trade have examined the pricing behavior of exporting firms or countries in exchange rate fluctuations [17][18][19][20][21][22][23][24][25][26][27]. This study also adopts this method.…”

Section: Introductionmentioning

confidence: 99%

Pricing Behavior for Sustainably Farmed Fish in International Trade: The Case of Norwegian Atlantic Salmon (Salmo salar)

Kim

2018

Sustainability

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The purpose of this study is to examine how the competitive advantage on international markets based on sustainable production is reflected in the pricing behavior of farmed fish, using Norwegian Atlantic salmon (Salmo salar) as an example. The salmon is widely consumed and highly traded due to the rapid development of aquaculture. Norway, which has been successful in regulating and innovating for sustainable aquaculture, accounts for more than half of world production. A model dealing with pass-through of exchange rates and tariff rates based on the exporter’s profit maximization was applied to 28 major countries importing from Norway, using yearly panel data for 2000–2016. Significant evidence of price discrimination was observed in Asian countries where Norway has a high market share, such as China, South Korea, Thailand, and Vietnam. This implies that the market structure of imperfect competition played a major role, suggesting the need to diversify imports to transform the market structure in favor of consumers in Asian countries. Research on the pricing behavior of fisheries products, including cultured fish, is limited in international trade. This paper addresses the gap by applying the pass-through model with changes in tariff rate as well as exchange rate.

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Pricing and Exchange Rate Pass-Through in Pulses Imports

Varma

2022

India Studies in Business and Economics

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Pricing to market behaviour of India's high value agri‐food exporters: an empirical analysis of major destination markets

Cited by 5 publications

References 18 publications

Pricing behaviour of the New World wine exporters

Pricing behaviour of the New World wine exporters

Pricing Behavior for Sustainably Farmed Fish in International Trade: The Case of Norwegian Atlantic Salmon (Salmo salar)

Pricing and Exchange Rate Pass-Through in Pulses Imports

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