Modelling Price Transmission within the Supply Chain under a European Protected Designation of Origin Framework

The Case of Parmigiano Reggiano in Italy

Bibliographic Data

ID13027322
AuthorsHugo Ferrer‐pérez (0000-0002-5583-3697, Universidad San Pablo CEU), Filippo Arfini (0000-0002-5179-2541, University of Parma), José María Gil Roig (0000-0003-3313-9052, Universitat Politècnica de Catalunya, corresponding author)
Year2019
Volume8
Issue3
Pages87-87
Publication date2019-03-08
Open AccessYes
TypeARTICLE
VenueSocial Sciences (JOURNAL)
Journal identifiersISSN: 2076-0760 • E-ISSN: 2076-0760
PublisherMDPI AG (PUBLISHER • IT)
DOI10.3390/socsci8030087
OpenAlexW2921025997
LanguageEN
References cited29

Lately, we have witnessed how European Institutions have directed many efforts at improving the effectiveness of food quality schemes (FQS) to address the increasing complexity that has affected all elements of the operating structure of agrifood supply chains worldwide, especially prices. In this paper, we conduct a comparative analysis of the price transmission process in the dairy sector between farm and retail markets within the protected designation of origin (PDO) framework and its non-protected counterpart in Italy. This paper considers a unique dataset for the PDO Parmigiano Reggiano cheese and for a non-protected counterpart in Italy covering a recent period after the price crises that took place nearly a decade ago. A multivariate error correction type approach was estimated together with the corresponding impulse response functions to provide useful insights for understanding the differences in the performance of the price transmission process between protected and non-protected food products. Contrary to most of the previous literature, our results support the hypothesis of symmetric price dynamics along the PDO cheese supply chain. The fewer number of farmers reduces the market power at the retail level generating more efficient price transmission dynamics. Short-run dynamics suggest that in the PDO cheese market farmers and retailers react quicker and with a similar magnitude to market changes, while in the conventional cheese market, retailers benefit in the short run from quicker and of higher magnitude responses to unanticipated market shocks

Business · Economics · Industrial organization · Market power · Microeconomics · Quality (philosophy · Supply chain · Telecommunications · Transmission (telecommunications · Economics of Agriculture and Food Markets · Engineering · Market Dynamics and Volatility · Wine Industry and Tourism · Marketing

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