Vertical price transmission: a case of integrated Malaysian broiler industry
This paper examines how price changes are transmitted between farm-wholesale-retail market levels of broiler meat in Peninsular Malaysia. Data used in the analysis include average monthly farm, wholesale and retail price index for standard broiler meat for period 2000M01 through 2011M12. Johansen’s...
| Main Authors: | , , , |
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| Format: | Article |
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Global Journals
2014
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| Online Access: | http://psasir.upm.edu.my/id/eprint/35985/ |
| _version_ | 1848848206755004416 |
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| author | Muazu, Abdulrazak Umar Mohamed , Zainal Abidin Shamsudin, Mad Nasir Abd. Latif, Ismail |
| author_facet | Muazu, Abdulrazak Umar Mohamed , Zainal Abidin Shamsudin, Mad Nasir Abd. Latif, Ismail |
| author_sort | Muazu, Abdulrazak Umar |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper examines how price changes are transmitted between farm-wholesale-retail market levels of broiler meat in Peninsular Malaysia. Data used in the analysis include average monthly farm, wholesale and retail price index for standard broiler meat for period 2000M01 through 2011M12. Johansen’s and Juselius co-integration technique was used to examine whether long run relationship between the price indices exists. Asymmetry error correction model was used to analyze price transmission behavior along the vertical supply chain. The results indicate there is long run equilibrium relationship between the market price levels. The results of price transmission elasticity show retail responds to wholesale 0.943% and retail to farm 0.0284%. The sign of the value of ECT is negative (-0.659) and significant at 5% significance level implying an ECT towards equilibrium is expected. The formal test of asymmetry proved symmetric price transmission retail-wholesale and asymmetry behavior retail to farm.
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| first_indexed | 2025-11-15T09:30:49Z |
| format | Article |
| id | upm-35985 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T09:30:49Z |
| publishDate | 2014 |
| publisher | Global Journals |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-359852016-02-12T07:18:12Z http://psasir.upm.edu.my/id/eprint/35985/ Vertical price transmission: a case of integrated Malaysian broiler industry Muazu, Abdulrazak Umar Mohamed , Zainal Abidin Shamsudin, Mad Nasir Abd. Latif, Ismail This paper examines how price changes are transmitted between farm-wholesale-retail market levels of broiler meat in Peninsular Malaysia. Data used in the analysis include average monthly farm, wholesale and retail price index for standard broiler meat for period 2000M01 through 2011M12. Johansen’s and Juselius co-integration technique was used to examine whether long run relationship between the price indices exists. Asymmetry error correction model was used to analyze price transmission behavior along the vertical supply chain. The results indicate there is long run equilibrium relationship between the market price levels. The results of price transmission elasticity show retail responds to wholesale 0.943% and retail to farm 0.0284%. The sign of the value of ECT is negative (-0.659) and significant at 5% significance level implying an ECT towards equilibrium is expected. The formal test of asymmetry proved symmetric price transmission retail-wholesale and asymmetry behavior retail to farm. Global Journals 2014 Article PeerReviewed Muazu, Abdulrazak Umar and Mohamed , Zainal Abidin and Shamsudin, Mad Nasir and Abd. Latif, Ismail (2014) Vertical price transmission: a case of integrated Malaysian broiler industry. Global Journal of Science Frontier Research: D Agriculture & Veterinary, 14 (5-D). pp. 1-9. ISSN 0975-5896; ESSN: 2249-4626 http://journalofscience.org/index.php/GJSFR/article/view/1180 |
| spellingShingle | Muazu, Abdulrazak Umar Mohamed , Zainal Abidin Shamsudin, Mad Nasir Abd. Latif, Ismail Vertical price transmission: a case of integrated Malaysian broiler industry |
| title | Vertical price transmission: a case of integrated Malaysian broiler industry |
| title_full | Vertical price transmission: a case of integrated Malaysian broiler industry |
| title_fullStr | Vertical price transmission: a case of integrated Malaysian broiler industry |
| title_full_unstemmed | Vertical price transmission: a case of integrated Malaysian broiler industry |
| title_short | Vertical price transmission: a case of integrated Malaysian broiler industry |
| title_sort | vertical price transmission: a case of integrated malaysian broiler industry |
| url | http://psasir.upm.edu.my/id/eprint/35985/ http://psasir.upm.edu.my/id/eprint/35985/ |