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The Canadian Beef and Pork Sectors: New Found Relevance of Live Market Information
Author(s) -
MacArthur J.,
Hawkins M. H.,
Adamowicz W. L.,
Norby R. R.
Publication year - 1985
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.1985.tb02046.x
Subject(s) - anticipation (artificial intelligence) , business , transmission (telecommunications) , relevance (law) , economics , monetary economics , agricultural economics , telecommunications , artificial intelligence , computer science , political science , law
The structure of price transmission both vertically (between links in the market channel) and horizontally (between market areas) for beef and pork in Canada is examined. The analysis of vertical price transmission indicates that farmgate prices lead retail prices. The hypothesized relationship between retail and farmgate prices is that the farmgate demand curve is shifted by wholesaler anticipation of the retail price changes. Such a situation would place greater importance on the live markets since prices determined in these markets would eventually be reflected in the retail market. The results have further implications for the determination of price margins and related policy issues.