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Price transmission along the Vietnamese pangasius export chain
- Source :
- Aquaculture, 493, 416-423, Aquaculture 493 (2018)
- Publication Year :
- 2018
-
Abstract
- Price transmission in international supply chains is important to ensure that price premiums paid by consumers for environmental sustainability labels are transmitted upstream to farmers. This facilitates investment in sustainable aquaculture systems. This study analyzes the price transmission from the international retail stage to the Vietnamese farm, focusing on frozen pangasius fillets. We used monthly nominal prices at farm and export stages in Vietnam, and at wholesale and retail stages in Poland for the period from August 2010 to December 2014. Price signals at the Polish retail stage were found to transmit back to the wholesale, export, and farm stages. Moreover, price transmission from wholesale to export and from export to farm is characterized by both short- and long-run symmetries. In the short run, retailers tend to transmit only wholesale price increases to their customers and wholesalers transmit only retail price increases to exporters. A long-run relationship between retailers and wholesalers is absent, thereby reducing the ability of chain actors to respond to all market signals, including downward changes. Given the delay in price transmission in the short run, the introduction of business-to-business electronic trading or auction markets might reduce this delay along the retail, wholesale, export, and farm stages. To enhance the long-run price relationship in the wholesale-retail market, more retailers should enter the pangasius market. The transmission of price changes from Polish markets back to Vietnamese pangasius farmers is a positive signal for farmers to invest in sustainable production methods, as consumer price premiums likely flow back to the farm.
- Subjects :
- Supply chain
Bedrijfseconomie
Mid price
Pangasius
WASS
Aquaculture
Aquatic Science
Biology
Agricultural economics
Aquaculture and Fisheries
Business Economics
0502 economics and business
050207 economics
Wholesale price index
Short run
Aquacultuur en Visserij
Producer Price Index (India)
05 social sciences
04 agricultural and veterinary sciences
Investment (macroeconomics)
Electronic trading
Sustainability certification
Vietnam
040102 fisheries
WIAS
0401 agriculture, forestry, and fisheries
Price transmission
Limit price
Subjects
Details
- Language :
- English
- ISSN :
- 00448486
- Database :
- OpenAIRE
- Journal :
- Aquaculture, 493, 416-423, Aquaculture 493 (2018)
- Accession number :
- edsair.doi.dedup.....d29a5b81807f4e578ffa2d66bfc4ea11