Price transmission in whole milk powder markets: implications for the Oceania dairy sector of changing market developments

Zhang, Jing, Brown, Colin, Dong, Xiaoxia and Waldron, Scott (2017) Price transmission in whole milk powder markets: implications for the Oceania dairy sector of changing market developments. New Zealand Journal of Agricultural Research, 1-14. doi:10.1080/00288233.2017.1284133


Author Zhang, Jing
Brown, Colin
Dong, Xiaoxia
Waldron, Scott
Title Price transmission in whole milk powder markets: implications for the Oceania dairy sector of changing market developments
Journal name New Zealand Journal of Agricultural Research   Check publisher's open access policy
ISSN 1175-8775
0028-8233
Publication date 2017-02-01
Year available 2017
Sub-type Article (original research)
DOI 10.1080/00288233.2017.1284133
Open Access Status Not yet assessed
Start page 1
End page 14
Total pages 14
Place of publication Singapore, Singapore
Publisher Taylor & Francis Asia Pacific
Collection year 2018
Language eng
Abstract Recent developments in Asian dairy markets have significant implications for the Oceania (OC) dairy sector and especially whole milk powder markets. However, Asia is supplied not only by OC but also by the European Union (EU) and United States (US). Vector error correction models are used to analyse price relationships and market integration using monthly price data from January 2006 to December 2015. The results suggest that prices of whole milk powder in OC, EU and US are not independent and are instead co-integrated in the long run. OC and EU affect each other and adjust their price deviations quickly. However, no obvious correlation exists between OC and US despite a unidirectional relationship from EU to US. As the OC dairy sector responds to changes in the Asian dairy market, particularly in China, these price interrelationships with other key suppliers need to be recognised.
Keyword European Union
Oceania
Price transmission
United States
Whole milk powder
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
School of Agriculture and Food Sciences
 
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