Food price dynamics and price adjustment in the EU

209 Pages·2015·1.37 MB·English

by  McCorriston

Food Price Dynamics and Price Adjustment in the EU

OUPCORRECTEDPROOF–FINAL,9/9/2015,SPi
Food Price Dynamics and
Price Adjustment in the EU
Edited by
Steve McCorriston
1
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Contents
ListofFigures vii
ListofTables ix
ListofContributors xi
1. Introduction 1
SteveMcCorriston
2. FoodInflationintheEU:ContrastingExperienceand
RecentInsights 20
TimLloyd,SteveMcCorriston,andWynMorgan
3. OverviewofPriceTransmissionandReasonsforDifferent
AdjustmentPatternsacrossEUMemberStates 51
IslamHassouneh,CarstenHolst,TeresaSerra,Stephanvon
Cramon-Taubadel,andJoséM.Gil
4. PriceTransmissioninFoodChains:TheCaseoftheDairyIndustry 65
CélineBonnet,TifennCorre,andVincentRéquillart
5. SpatialandTemporalRetailPricingontheGermanBeerMarket 102
Jens-PeterLoyandThomasGlauben
6. TheUseofScannerDataforMeasuringFoodInflation 122
ElenaCastellari,DanieleMoro,SilviaPlatoni,andPaoloSckokai
7. PriceTransmissioninModernAgriculturalValueChains:
SomeConceptualIssues 147
JohanSwinnenandAnneleenVandeplas
8. ASupplyChainPerspectiveonPriceFormationin
Agri-FoodChains 167
GerhardSchieferandJivkaDeiters
9. SummingUp:NewInsightsandtheEmergingPolicyand
ResearchAgendaforAddressingFoodPriceInflation 187
SteveMcCorriston
Index 193

List of Figures
1.1. WorldfoodpriceindexandUKfoodconsumerpriceindex(2005=100) 3
1.2. Experienceoffoodandnon-foodinflationintheUK,Germany,Japan,
andtheUS(1998–2014) 5
1.3. ExperienceoffoodinflationinselectedEUMemberStates(1998–2014) 8
1.4. UKretailbreadandworldwheatprices,July2001–July2004
(January2003=100) 12
1.5. Weeklyprices(pence)ofaspecificbreadproductacrossallmajor
UKfoodretailers(KingsmillEverydayWhiteBread) 13
2.1. ShareofhouseholdexpenditureonfoodacrossEU-27 23
2.2. Priceindicesforwheatinglobalanddomesticagriculturalmarkets
andretailbreadprices,1997–2011forUK,France,andPoland 25–6
2.3. AverageratesoffoodinflationacrossEUMemberStates,2000–13 28
2.4. Averageratesoffoodandnon-foodinflationacross
EUMemberStates,2000–13 29
2.5. Coefficientofvariationoffoodandnon-foodinflationacross
EUMemberStates,2000–13 30
2.6. Correlationbetweenbarrierstocompetitionatretailindexand
contributionofworldwheatpricestoretailbreadprices 46
2.7. Correlationbetweenmarketshareofdiscountersandcontribution
ofworldwheatpricestoretailbreadprices 47
3.1. PoultrypriceseriesfortenEUcountries 58
4.1. RawmilkpriceinFrance1990–2011 69
4.2. Evolutionofprices2006–09 70
5.1. SampleretailpricesofRadebergerpilsenerfordifferentdistances
betweenstoreandbrewery(weeklyfrom2000to2001) 105
6.1. Brandlevelaverageweeklyprices(euro/litre)forhigh-quality
refrigeratedmilkinchainA(leftpanel)andchainB
(rightpanel)(2009–11) 126
6.2. Brandlevelaverageweeklyprices(euro/kg)forbutterinchainA
(leftpanel)andchainB(rightpanel)(2009–11) 127
ListofFigures
6.3. Comparisonofdairypriceindicescomputedondifferentdatasets
(2009–11) 137
6.4. ComparisonofLaspeyresrefrigeratedmilkpriceindicescomputed
ondifferentdatasets(2011) 138
6.5. ComparisonofLaspeyresUHTmilkpriceindicescomputedon
differentdatasets(2011) 139
6.6. ComparisonofLaspeyresbutterpriceindicescomputedondifferent
datasets(2011) 140
6.7. ComparisonofLaspeyresyoghurtpriceindicescomputedondifferent
datasets(2011) 141
6.8. Comparisonofdifferentrefrigeratedmilkpriceindicescomputed
onscannerdata(2009–11) 142
6.9. ComparisonofdifferentUHTmilkpriceindicescomputed
onscannerdata(2009–11) 143
6.10. Comparisonofdifferentbutterpriceindicescomputed
onscannerdata(2009–11) 144
6.11. Comparisonofdifferentyoghurtpriceindicescomputedon
scannerdata(2009–11) 145
7.1. Relationshipbetweenproducerandconsumerprices 157
7.2. Pricetransmission((cid:1)) 161
7.3. Impactofcontractcosts 162
8.1. Theretailnetworkapproach 181
viii
List of Tables
2.1. CumulativechangesinfoodpricesacrossEUMemberStates,2005–13 24
2.2. Long-runpricetransmissionelasticities:Retailbreadpricesw.r.t.
worldwheatprices 45
3.1. EstimationoftheVectorErrorCorrectionModel:Adjustment
ofproducerandconsumerpricestolong-rundisequilibrium 60
3.2. Tobitresults:Parameterestimates 61
4.1. Dairydesserts:Descriptivestatisticsforpricesandmarketshares
bycategories 73
4.2. Fluidmilk:Descriptivestatisticsforpricesandmarketsharesbycategories 74
4.3. Resultsoftherandomcoefficientslogitmodel 82
4.4. Averageown-priceelasticitiesbetweenproducts 85
4.5. Impactofa10%decreaseintherawmilkpriceonretailprices 88
4.6. Regressionofpass-throughoncostshockvariablesandproduct
characteristics 90
5.1. RanksofregionalmarketsharesofbeerbrandsinGermany(2000–01) 106
5.2. Descriptivestatisticsofthebrands’pricingstrategies 113
5.3. Descriptivestatisticsofmodelvariables(2000–01) 114
5.4. Estimationresultsforspatialandtemporalbeerbrandpricing
characteristics(2000–01) 116
7.1. Atypologyofcontractingcosts 153