Spatial integration of dairy markets: effects of regulated prices

Authors

Keywords:

Single-price law, regulatory policy, cointegration

Abstract

The main objective of this research is to determine the existence of spatial integration between the dairy markets of the department of Atlántico and the departments of Antioquia and Cundinamarca. Time series econometric techniques such as error correction models, cointegration tests and impulse-response functions were applied, the results show at least one cointegrated vector for the prices of total raw milk and without voluntary bonuses, therefore there is sufficient evidence in favor of the presence of spatial integration between the markets analyzed, mainly influenced by arbitrage activities between suppliers at the departmental level, in a context regulated by the Ministry of Agriculture and Rural Development through a settlement system for the payment of raw milk at the national level.

References

Abdulai, A. (2002). Using threshold cointegration to estimate asymmetric price transmission in the Swiss pork market. Applied Economics, 34(6), 679–687. https://doi.org/10.1080/00036840110054035

Abidoye, B. O. y Labuschagne, M. (2014). The transmission of world maize price to South African maize market: A threshold cointegration approach. Agricultural Economics (United Kingdom), 45(4), 501–512. https://doi.org/10.1111/agec.12102

Alonso, J. C. y Bonilla, M. F. (2018). Integración espacial en el mercado de la guayaba pera en el Valle del Cauca. Cuadernos de Economía, 37(74), 471–494. https://doi.org/10.15446/cuad.econ.v37n74.58920

Alonso, J. C. y Gallego, A. I. (2010). Integracion espacial del mercado de la carne en las tres principales ciudades de Colombia: Evidencia de las series de precios. Economía & Región, 4(2), 5–28. http://ideas.repec.org/a/col/000411/008220.html

Barrett, C. B. (1996). Market Analysis Methods: Are Our Enriched Toolkits Well Suited to Enlivened Markets? American Journal of Agricultural Economics, 78(3), 825–829. https://doi.org/10.2307/1243313

Barrett, C. B. y Li, J. R. (2002). Distinguishing between equilibrium and integration in spatial price analysis. American Journal of Agricultural Economics, 84(2), 292–307. https://doi.org/10.1111/1467-8276.00298

Campo, J. y Cubillos, S. (2012). Convergencia de precios en Colombia: Integración de mercados a través del índice de precios al consumidor. Revista Finanzas y Política Económica, 4(2), 103–112.

Castillo, O. E. y Ambrosio, L. (2005). Transmisión de precios entre los mercados regionales ganaderos en Colombia. Temas Agrarios, 10(1), 29–40.

Deb, L., Lee, Y. y Lee, S. H. (2020). Market integration and price transmission in the vertical supply chain of rice: An evidence from Bangladesh. Agriculture (Switzerland), 10(7), 1–21. https://doi.org/10.3390/agriculture10070271

Dickey, D. A. y Fuller, W. A. (1981). Likelihood Ratio Statics for Autoregressive Time Series with a Unit Root. Econometrica, 49(4), 1057–1072.

Engle, R. F. y Granger, C. W. J. (1987). Co-Integration and Error Correction?: Representation , Estimation ,. 55(2), 251–276.

Gil, J., Clemente, J., Montañes, A. y Reyes, M. (1996). Integración espacial y cointegración: una aplicación al mercado de cereales en España. Estudios de Economía Aplicada, 6, 103–130.

Goodwin, B. K., y Grennes, T. J. (1998). Tsarist Russia and the World Wheat Market. Explorations in Economic History, 35(4), 405–430. https://doi.org/10.1006/exeh.1998.0706

Goodwin, B. K. y Piggott, N. E. (2001). Agricultural & Applied Economics Association Spatial Market Integration in the Presence of Threshold Effects Published by?: Oxford University Press on behalf of the Agricultural & Applied Economics Association Stable URL?: http://www.jstor.org/stable/1244. 83(2), 302–317.

Hansen, B. E. y Seo, B. (2002). Testing for two-regime threshold cointegration in vector error-correction models. Journal of Econometrics, 110(2), 293–318. https://doi.org/10.1016/S0304-4076(02)00097-0

Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12(2–3), 231–254. https://doi.org/10.1016/0165-1889(88)90041-3

Johansen, S. (1995). Likelihood-Based Inference in Cointegrated Vector Autoregressive Models (Oxford Uni).

Lombana, J., Martinez, D., Valverde, M., Rubio, J., Castrillón, J. y Marino, W. (2012a). Direccionamiento estratégico del sector ganadero del Caribe colombiano. Prospectiva del eslabón primario (2011-2016). In Editorial Universidad del Norte.

Lombana, J., Martínez, D., Valverde, M., Rubio, J., Castrillón, J. y Marino, W. (2012b). Caracterización del sector ganadero del Caribe colombiano. In Editorial Universidad del Norte.

Lutkepohl, H. (2005). New Introduction to Multiple Time Series Analysis. Springer.

Masaro, J. V., Depetris, E., Arancibia, R. G. y Rossini, G. (2014). Investigación: Investigación científica Retrasos en la transmisión de precios de exportación entre los principales productos lácteos santafesinos: leche en polvo entera y quesos. Ciencias Económicas, 2, 11–21. https://doi.org/10.14409/ce.v2i15.4264

McNew, K. y Fackler, P. L. (1997). Testing market equilibrium: Is cointegration informative? Journal of Agricultural and Resource Economics, 22(2), 191–207.

Ministerio de Agricultura y Desarrollo Rural. (2007, 12 de enero). Resolucio?n 12. Por la cual se establece el sistema de pago de la leche cruda al productor. Diario Oficial 46.513. https://www.icbf.gov.co/cargues/avance/docs/resolucion_minagricultura_0012_2007.htm

Ministerio de Agricultura y Desarrollo Rural. (2012, 20 de enero). Resolucio?n 17. Por la cual se establece el sistema de pago de la leche cruda al proveedor. Diario Oficial 48.335. https://www.redjurista.com/Documents/resolucion_17_de_2012_ministerio_de_agricultur a_y_desarrollo_rural.aspx#/

Obstfeld, M. y Taylor, A. M. (1997). Nonlinear aspects of goods-market arbitrage and adjustment: Heckscher’s commodity points revisited. Journal of the Japanese and International Economies, 11(4), 441–479. https://doi.org/10.1006/jjie.1997.0385

Phillips, P. C. B. y Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335–346. https://doi.org/10.1093/biomet/75.2.335

Ramos, J. L. (2006). Modalidades organizativas de los encadenamientos productivos en paises de economías emergentes: El caso del sector lácteo del Caribe colombiano. Universidad Politécnica de Valencia.

Rezitis, A. N. y Reziti, I. (2011). Threshold cointegration in the greek milk market. Journal of International Food and Agribusiness Marketing, 23(3), 231–246. https://doi.org/10.1080/08974438.2011.586916

Roldán, J. A., Dios, R. y Martínez, J. (2013). Integración espacial en el mercado europeo de aceite de oliva. ITEA Informacion Tecnica Economica Agraria, 109(4), 458–475. https://doi.org/10.12706/itea.2013.028

Sanjuán, A. I. y Gil, J. M. (1997). Integración espacial de mercados: Revisión empírica y aplicación al sector porcino de la UE. Investigaciones Agrícolas Económicas, 12(1,2,3), 276–297.

Septhon, P. (2003). Spatial Market Arbitrage and Threshold Cointegration. American Agricultural Economics Association, 85(December 2012), 1041–1046.

Sofán, H. (2015). Análisis de convergencia de precios en precios en los mercados de la carne, el arroz y la leche en Colombia. Universidad Nacional de Colombia.

Susanto, D., Parr Rosson, C. y Adcock, F. (2011). Identification of Employment Concentration and Specialization Areas?: Theory and Application. Beta Working Paper, 354. https://doi.org/10.1002/agr

Tabosa, F. J. S., Ferreira, R. T. y Castelar, L. I. (2014). Convergência de mercados intrarregionais: O caso do mercado atacadista brasileiro do tomate. Revista de Economia e Sociologia Rural, 52(1), 61–80. https://doi.org/10.1590/S0103-20032014000100004

Troncoso, R (2019) Transmisión de los precios del arroz en Colombia y el mundo. Lecturas de Economía, 91, 151-179. https://doi.org/10.17533/udea.le.n91a05

Downloads

Published

2022-06-30

Issue

No. 29 (2022): N° 29: ENE-JUN 2022

Section

Science article

License

I, ____________________________________________, author of the work and/ or article, adult, residing in the city of _________________, bearing the Identity Card/Passport n.° ______________________, issued in _______________________, in command of his/her/their physical and mental faculties, party hereinafter referred to as AUTHOR, signs the following authorization so the reproduction, publication, communication and distribution of the work can be done, under the following terms:

 

1. That, regardless of existing legal regulations due to the relationship of the parties to this contract, and any other existing legal presumption, the parties agree that the AUTHOR authorizes the Universidad del Norte, with the purpose of reproduce, publish, communicate and distribute the material called in the Revista de Economía del Caribe.

 

2. That such authorization apply to the copyright of the work, by any means, known or to be known, the public communication of the work, and the distribution of the work, directly or by third parties, purely educational purposes.

 

3. The AUTHOR undertakes to inform and declare the existence of this authorization and to preserve the right of the journal Revista de Economía del Caribe to the first publication of the work.

 

4. The AUTHOR states that the article is original and his/her/their exclusive creation, there being no impediment of any kind for the authorization he/she/they is/are giving, responding thereto by any action: claim, plagiarism or any other type of complaint that might arise about.

 

5. That such authorization is granted for free.

 

6. The moral rights of the author on the article correspond exclusively to the AUTHOR, in virtue of which, the Universidad del Norte agrees to expressly and rigorously recognize and respect them.