Price transmission analysis in pork supply chain in Serbia

Abstract

As the pork supply chain was perceived through three level of chain: agricultural sector, processing and distribution sector, the main objective of this paper was the estimation of the vertical price transmission in the pork supply chain in the Republic of Serbia for period 2008-2015. The analysis of the price transmission was related on the presence of the asymmetry and was estimated with AECM model. The results indicated the presence of the negative asymmetry in the price transmission and one of the main causes of the presence of asymmetry was the abuse of the market power by processing sector, i.e. slaughtering industry.