PR - Price Transmission In The Beef Value Chain – The Case Of Bloemfontein, South Africa

A concern that is frequently raised by livestock farmers is the relationship between the producer- and retail prices. A perception also exists among producers that the market prices are set by the retailers. The objective of this study thus is to determine if these problems do exist. According to the results obtained from the statistical analysis it is clear that the allegations of the red meat farmers and feedlots is not true in most of the cases. The analysis indicated that three of the four investigated retailers do follow the same price trend and that there is a bi-directional relationship between the retail and carcass prices in two of the instances. It is however recommended that asymmetry in price transmission in the Bloemfontein beef value chain be tested as more data becomes available.

Keywords: beef, value chain, price transmission