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Asymmetry in farm-retail price transmission for major dairy products

Asymmetry in farm-retail price transmission for major dairy products

American Journal of Agricultural Economics 69(2): 285-292

An econometric model is used to estimate the net relationship between change in the farm-level price of milk and changes in the retail prices of four major dairy products, fluid milk, butter, cheese, and ice cream in the USA. Results indicate that the farm-retail price transmission process in the dairy sector is asymmetric. Retail dairy product prices adjust more rapidly and more fully to increases in the farm price of milk than to decreases.

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Accession: 001533494

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DOI: 10.2307/1242278

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