scholarly journals Maize Market Integration: A Case Study of Maize Marketing In Ghana

2020 ◽  
Vol 1 (4) ◽  
pp. 1-11
Author(s):  
Francis Srofenyoh
Keyword(s):  
Market Integration ◽  
Price Transmission ◽  
Small Scale ◽  
Cape Coast ◽  
Agricultural Marketing ◽  
Food And Agriculture ◽  
Alternative Livelihood ◽  
Long Run ◽  
Consumer Markets

Agricultural marketing remains a challenge; this is because a large proportion of the population is engaged in a form of small-scale agricultural production and marketing that is characterised by a multitude of constraints and market imperfections. Paramount among the constraints are limited land availability, poor physical and legal infrastructure, high transaction costs and few available and alternative livelihood support systems. For some of these constraints to be removed, there is the need for information flow. Thus, it is believed that, spatial price transmission or market integration measures, the degree to which markets at geographically separated locations share common long-run price or trade information on a homogenous commodity. Using the co-integration approach, the results of the study using either Techiman or Kumasi as the producer markets of maize, the following markets Bolga, Wa, Ho, Tamale, Mankesim, Koforidua, Accra, Cape Coast and Takoradi/Sekond (as consumer markets) shows that there is a long run price transmission relations with the consumer markets. However, Bolgatanga market is the only exception. It is recommended that the Ministry of Food and Agriculture should intensify collection and dissemination of data on maize prices to both consuming markets and producing markets. This can be enhanced by Government establishing market information centres in these markets where both traders and farmers could go for information on the price trend of the commodity in other market(s).Keywords: Co-integration; Marketing; Market Integration; Non-stationarity; stochastic process.

MECHANIZATION OF POTATO GRADING ON SMALL-SCALE FARMS: A CASE STUDY FROM PERU

2005 ◽  
Vol 41 (1) ◽  
pp. 81-92 ◽  
Author(s):  
G. P. BUTLER ◽  
T. BERNET ◽  
K. MANRIQUE
Keyword(s):  
Developing Countries ◽  
Market Integration ◽  
Low Cost ◽  
Farming System ◽  
Agricultural Products ◽  
Small Scale ◽  
Critical Aspect ◽  
Small Scale Farmers ◽  
Important Cash Crop

Potatoes are an important cash crop for small-scale producers worldwide. The move away from subsistence to commercialized farming, combined with the rapid growth in demand for processed agricultural products in developing countries, implies that small-scale farmers and researchers alike must begin to respond to these market changes and consider post-harvest treatment as a critical aspect of the potato farming system. This paper presents and assesses a low cost potato-grading machine that was designed explicitly to enable small-scale potato growers to sort tubers by size for supply to commercial processors. The results of ten experiments reveal that the machine achieves an accuracy of sort similar to commercially available graders. The machine, which uses parallel conical rollers, has the capacity to grade different tuber shapes and to adjust sorting classes, making it suitable for locations with high potato diversity. Its relatively low cost suggests that an improved and adapted version of this machine might enhance market integration of small-scale potato producers not only in Peru, but in other developing countries as well.

scholarly journals Market Integration and Price Transmission in the Vertical Supply Chain of Rice: An Evidence from Bangladesh

Agriculture ◽  
2020 ◽  
Vol 10 (7) ◽  
pp. 271
Author(s):  
Limon Deb ◽  
Yoonsuk Lee ◽  
Sang Hyeon Lee
Keyword(s):  
Supply Chain ◽  
Market Integration ◽  
Threshold Effect ◽  
Price Transmission ◽  
Causality Test ◽  
Threshold Autoregressive ◽  
Market Participants ◽  
Long Run ◽  
Short Run ◽  
Retail Prices

As a staple food, rice has an enormous market in Bangladesh in terms of market participants and the volume of the product. As the price of rice is always a sensitive factor for producers, poor consumers and policy makers, this paper investigates market integration and price transmission along the vertical supply chain of rice. Johansen’s test of co-integration confirmed that farm, wholesale and retail prices are co-integrated in the long-run. A causality test revealed that prices were found to be at wholesale levels for both the upstream and downstream markets. The asymmetry error correction model (ECM) has discovered short-run and long-run asymmetry in price transmission in the vertical supply chain where both producers and consumers were being affected due to positive and negative asymmetry. Threshold autoregressive (TAR) and momentum threshold autoregressive (M-TAR) models have confirmed threshold co-integration as well as threshold effect on asymmetry in price transmission. The results highlight the inevitability of policy implementations and increased public interventions to reduce asymmetry for engendering greater pricing efficiency in Bangladesh rice markets.

scholarly journals Market integration and price transmission in Ethiopian banana supply chain

2020 ◽  
Author(s):  
Zewdie Habte Shikur
Keyword(s):  
Supply Chain ◽  
Granger Causality ◽  
Market Integration ◽  
Geographic Distance ◽  
Price Transmission ◽  
Transport Costs ◽  
Wholesale Market ◽  
Market Prices ◽  
Long Run ◽  
Banana Market

Abstract Local banana market prices in surplus areas are asymmetrically integrated and transmitted with that in central banana market prices or deficit areas due to geographic distance between markets, market power, and high transportation costs. As the result, the banana marketing margin is high due to high transport costs and transaction costs. Although the policy relevance of degree of vertical and spatial price transmission in banana supply chain, in Ethiopia is largely unknown, and this study assists to bridge the existing gap. The study investigates degree of spatial and vertical market integration and price transmission of banana supply chain in Ethiopia. ARDL co-integration bound tests and Granger causality tests are employed to examine vertical and horizontal price transmissions in banana supply chain using 10 years average monthly banana prices. The study finds relatively a higher degree of price transmission from central wholesale banana market to surplus banana market. Central wholesaler price has a significant effect on both banana producer and retailer prices in both long-run and short‐run. The result indicates that Granger causality is running from central wholesale market to local markets. There may be high transaction cost may reflect the vertical and spatial asymmetric price transmissions in banana supply chain. Policy interventions in banana supply chains could facilitate a faster and substantial degree of price transmission between actors in banana supply chain.

scholarly journals Evaluation of Rice Markets Integration in Bangladesh

2010 ◽  
Vol 15 (2) ◽  
pp. 77-96 ◽  
Author(s):  
Mohammad Ismail Hossain ◽  
Wim Verbeke
Keyword(s):  
Market Integration ◽  
Structural Adjustment ◽  
Agricultural Sector ◽  
Price Transmission ◽  
Long Run ◽  
Adjustment Program ◽  
Integration Test ◽  
Short Run ◽  
The Government ◽  
Market Interdependence

The liberalization of the agricultural sector in general and the rice subsector in particular has been a major component of Bangladesh’s structural adjustment program initiated in 1992. However, the government has continued to intervene in the rice subsector. This paper examines whether the regional/divisional rice markets have become spatially integrated following the liberalization of the rice market. Wholesale weekly coarse rice prices at six divisional levels over the period of January 2004 to November 2006 were used to test the degree of market integration in Bangladesh using co-integration analysis and a vector error correction model (VECM). The Johansen co-integration test indicated that there are at least three co-integrating vectors implying that rice markets in Bangladesh during the study period are moderately linked together and therefore the long-run equilibrium is stable. The short-run market integration as measured by the magnitude of market interdependence and the speed of price transmission between the divisional markets has been weak.

Adaptability of Backcasting for Sustainable Development

2015 ◽  
Vol 6 (3) ◽  
pp. 16-27 ◽  
Author(s):  
Eva Wieners ◽  
Martina Neuburger ◽  
Udo Schickhoff
Keyword(s):  
Behavioral Change ◽  
Time Frame ◽  
Small Scale ◽  
Transition Management ◽  
Long Run ◽  
First Results ◽  
Small Scale Farmers ◽  
Reasonable Use

To cope with problems like climate change, lack of food security, and poverty, a more reasonable use of existing resources is needed. Hence, a transition towards a sustainable behavior in the industrial as well as the developing countries is of core importance. Transition management and backcasting are two methodologies that have been developed mainly in the Netherlands to achieve this behavioral change. This paper examines in a case study, in a small village in the mid-hills of Nepal, whether these methodologies are also applicable in a developing country. Moreover it analyzes which adjustments are needed to achieve good outcomes. First results show that this methodology seems to be appropriate to trigger a change in thinking towards long-term considerations amongst the small scale farmers. Long-range thinking and future envisioning can stimulate investments in technologies that tend to be sustainable and guarantee a more stable return in the long run. Compared to programs in Europe, instructors should adjust time frame and workshop design.

scholarly journals PRICE TRANSMISSION OF SKIM MILK POWDER IN INDONESIA: DO SKIM MILK POWDER IMPORT PRICES FOLLOW THE PRICES IN NEW ZEALAND?

2014 ◽  
Vol 4 (2) ◽  
pp. 171-192
Author(s):  
Venty Fitriany Nurunisa ◽  
Bonar Marulitua Sinaga ◽  
Ratna Winandi ◽  
Bernhard Brummer
Keyword(s):  
New Zealand ◽  
Market Integration ◽  
Milk Powder ◽  
Skim Milk ◽  
Skim Milk Powder ◽  
Price Transmission ◽  
Vector Error Correction ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Johansen Cointegration Test

The objectives of this research are i) to examine New Zealand's dairy sector and ii) to analyze the market integration and price transmission of Skim Milk Powder (SMP) of New Zealand and Indonesian market. The methods used are Augmented Dickey Fuller test, Johansen Cointegration test, and Vector Error Correction Model. The result indicates: 1) as trade partner, New Zealand is powerful due to its status as the largest dairy producer worldwide; therefore, Indonesia has less bargaining power and 2) The SMP market of both countries are integrated. The coefficient of long run equation variable indicates that every 10 percent changes of one market, the imported SMP price will adjust 10.97 percent, while the exported SMP price will adjust 9.12 percent. The loading vector coefficient indicates that Indonesia is the only party adjusting to long run disequilibrium. Policies to minimize the risks includes: i) buffer budget, ii) alternative suppliers and iii) futures trade.

scholarly journals Price transmission analysis between Finnish and selected European broiler markets

2008 ◽  
pp. 1-7
Author(s):  
Xing Liu
Keyword(s):  
Market Integration ◽  
Wholesale Price ◽  
Market Price ◽  
Price Transmission ◽  
Poultry Meat ◽  
Agricultural Commodity ◽  
Member States ◽  
Eu Countries ◽  
Long Run ◽  
Antitrust Legislation

The import of poultry meat in Finland has been growing since 2000, mostly in broiler. Because of the avian flu scare, there has been a ban on importing poultry from Asia for the past two years, so Finland imported broiler mostly from European 25 countries, such as Denmark, Germany and France. The market share of broiler from foreign countries is growing, so is the competition on the price. Allowing for price signals to be transmitted spatially in different markets and market integration is the key premises in economics. One of the main goals of the EU’s common agricultural policy is to get spatially integrated agricultural commodity markets within and between all member states. In an integrated market, price information should be efficiently transmitted between the member states. EU commission claims that also domestic policies and regulations applied in the member countries, should support (or at least not to distort) the goal of achieving the informational efficient single European market. Particularly in Finland, with small and remote domestic market, the issue of market efficiency and transmission of market information have significant implications for the first is actions taken in accordance of the antitrust legislation on regulating the domestic food industry structures. The second is permission for domestic agricultural subsidy programs that supplement the CAP. The main purpose of the paper is to estimate the price transmission relationship between the Finnish broiler market and selected its major exporting partners using the wholesale prices, i.e. the prices in front of the slaughterhouses in each countries. The result implies that the price level of Finnish broiler market is rather stable in comparison to the most of other EU countries, and the domestic demand and supply mostly decide the wholesale price in Finland. Finnish broiler price is not cointegrated with the price of the selected countries, indicating that there is no significant long-run relationship between them. The findings show, however, the unidirectional causality between Finnish broiler price and the prices in the other EU countries in the short run. That is, the broiler price shock of Finland appears to be driven partly by the prices of imported countries, but the reverse is not true.

scholarly journals Analisis Efisiensi Pemasaran Jagung di Provinsi Gorontalo

2021 ◽  
Vol 9 (1) ◽  
pp. 55-66
Author(s):  
Ulfira Ashari ◽  
Syamsir Syamsir
Keyword(s):  
Market Integration ◽  
Sampling Technique ◽  
Marketing Channels ◽  
Price Transmission ◽  
Snowball Sampling ◽  
Correction Model ◽  
Long Run ◽  
Marketing Margins ◽  
Share Value ◽  
Snowball Sampling Technique

Price fluctuations at the producer and consumer levels determine the performance of the maize market in Gorontalo Province. This will affect the decisions and ability of the corn marketing agencies involved in responding to price changes. The slow response of marketing agencies to changes in maize prices indicates inefficient market conditions in terms of prices. In addition, differences in market power between marketing agencies indicate inefficiencies in marketing maize from an operational perspective. Therefore, this research was conducted with the aim of 1) analyzing market integration and transmission of maize prices between producers and consumers, 2) analyzing the distribution of marketing margins in the maize marketing channels in Gorontalo Province. The research data used is in the form of weekly price data at the producer and consumer levels for 148 weeks, from March 2016 to March 2019 and added data from direct interviews with the marketing actors involved, namely farmers as many as 30 people, while sampling of traders was carried out by snowball sampling technique. Data analysis used the Asymmetric Error Correction Model (AECM), marketing margin and farmer share for each channel. The results showed that the transmission of maize prices at the producer and consumer level is symmetrical in the long run indicating market integration. The smallest marketing margin and the largest farmer share are in Channel III, where marketing is done directly to an exporter. Corn marketing in Gorontalo Province shows price transmission and market integration as well as high farmer share value in each channel, so it can be concluded that marketing is efficient.

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