Main policy assumptions for dairy markets

In article the complex assessment of modern policy of import substitution in the sphere of the agrofood market based on balance of its positive and negative effects is given. According to Rosstat and the Federal Customs Service the complex dynamic analysis of the meat and dairy markets in the context of key indicators — the price, import, export is carried out. Relationships of cause and effect of change of a condition of the food market in connection with introduction of economic sanctions are revealed. The conclusion that the policy of import substitution has to consider the potential risks and threats connected as with the possible accompanying growth of the food prices and deterioration of the food status of the least provided groups of the population, and with technical and technological dependence of domestic agricultural production on a foreign market is drawn. The main directions in which programs of support and stimulation are necessary are formulated.

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Can Family Farms Depend on Price Information? Testing Butter and Curd Price Integration in Poland

Agriculture ◽

10.3390/agriculture11050434 ◽

2021 ◽

Vol 11 (5) ◽

pp. 434

Author(s):

Anna M. Klepacka ◽

Wojciech J. Florkowski ◽

Cesar Revoredo-Giha

Keyword(s):

World Market ◽

Response Analysis ◽

The European Union ◽

Family Farms ◽

Quota System ◽

Dairy Farmers ◽

Vector Error Correction ◽

Vector Error ◽

Vec Model ◽

Dairy Markets

This study examines the integration of regional dairy markets in Poland, which is a major European dairy producing country. The analysis of prices is important, as many dairy farmers are members of dairy processing cooperatives, and their incomes are affected by the prices of two popular products: butter and curd. Moreover, the period of study included significant fluctuations in the world market and the termination of the milk quota system in the European Union (EU). The price records used in this study are from the two main milk-producing regions in the country: Northern and Central. The data were tested for stationarity and Granger causality before estimating a Vector Error Correction (VEC) model. Estimation results show that the removal of the milk quota lowered prices of butter and curd in the two regions. The relationships of the prices in both regions for butter markets were nearly perfect during the period January 2010–November 2017, but curd prices were found unintegrated. Impulse response analysis showed that the effect of shocks was mostly absorbed in a two-week period and prices returned to full equilibrium in about four to five weeks. This fast price adjustment indicates that both markets operate properly and no market participant can obtain gains above those offered at equilibrium.

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Changing global dairy markets: Comparison of dairy systems and economics

Large Dairy Herd Management ◽

10.3168/ldhm.0420 ◽

2017 ◽

pp. 299-306

Author(s):

T. Hemme

Keyword(s):

Dairy Markets ◽

Dairy Systems

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Leading properties of GDT auctions for dairy prices

British Food Journal ◽

10.1108/bfj-06-2018-0404 ◽

2020 ◽

Vol 122 (7) ◽

pp. 2303-2328

Author(s):

Jakub Olipra

Keyword(s):

Milk Powder ◽

Price Transmission ◽

Price Expectations ◽

Content Type ◽

Vector Error Correction ◽

Vector Error ◽

Setting Process ◽

Dairy Markets ◽

The Us ◽

Vector Error Correction Models

PurposeProfessionals from the dairy sector commonly believe that the results of Global Dairy Trade (GDT) auctions are a good leading indicator for prices of dairy commodities. The purpose of this paper is to test that hypothesis for prices of key dairy commodities (skimmed milk powder (SMP), whole milk powder (WMP), butter and cheddar) in the main dairy markets (the US, EU and Oceania).Design/methodology/approachThe leading properties of the GDT auctions are investigated using vector error correction models (VECM).FindingsThe results show that prices at GDT auctions may be treated as a benchmark for global prices of WMP and SMP as they affect prices in all considered markets. However, in case of EU market the relationship with the GDT is bidirectional. GDT prices reveal some leading properties also in cheddar market, however price relationships in this market are much more complex. In case of butter market, GDT can be regarded as a benchmark only for Oceania.Practical implicationsThe results of this paper improve knowledge on price transmission in dairy markets, show the role of the GDT auctions in the price setting process, and thus may help professionals from the dairy sector to formulate their price expectations more precisely.Originality/valueDespite the fact that many professionals from the dairy sector treat GDT auctions as a benchmark, so far their leading properties have not been scientifically proven.

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Impact of National Generic Dairy Advertising on Dairy Markets, 1984–95

Journal of Agricultural and Applied Economics ◽

10.1017/s107407080000780x ◽

1997 ◽

Vol 29 (2) ◽

pp. 303-313 ◽

Cited By ~ 16

Author(s):

Harry M. Kaiser

Keyword(s):

Return On Investment ◽

Average Rate ◽

National Level ◽

Dairy Industry ◽

Rate Of Return ◽

Dairy Markets ◽

High Return

AbstractThe impacts of generic dairy advertising on retail, wholesale, and farm dairy markets are estimated in this study at the national level. The results indicate that generic dairy advertising had a major impact on retail, wholesale, and farm markets for the dairy industry. The main conclusion of the study is that farmers are receiving a high return on their investment in generic dairy advertising, i.e., an average rate of return of $3.40 for every dollar invested over the period 1984–95. Moreover, the return on investment in advertising was higher in the most recent year, almost double the average for the previous 11 years.

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