Paper Information

Journal:   JOURNAL OF CROP ECOPHYSIOLOGY (AGRICULTURE SCIENCE)   FALL 2009 , Volume 3 , Number 11; Page(s) 83 To 97.
 
Paper: 

IDENTIFYING THE CAUSES OF AGRICULTURAL PRICE FLUCTUATION (A CASE STUDY OF BEEF, VEAL AND POULTRY)

 
 
Author(s):  ORDIBAZAR H.*, MOGHADDASI R.
 
* ISLAMIC AZAD UNIVERSITY, SCIENCE AND RESEARCH BRANCH, TEHRAN, IRAN
 
Abstract: 

This study was initiated to identify the cause of agricultural price fluctuations between domestic producer prices and their world prices. Present findings reveal that sources of beef, veal and poultry price fluctuations are of great importance. To achieve the goal, annual information of 2001-2007 concerning beef, veal and poultry prices were used. Study procedure was based on decomposition method developed by Liefert who uses the domestic producer prices and world prices from exchange rate and import tariff rate. Results obtained indicated that a beef and veal market for 2001-2003 and 2006-2007 changes in tariff highly contributed to the domestic prices, although during 2003-2005 world prices played a great role. The poultry market for 2001-2004 and 2006-2007 changes of tariff rate drastically was involved in fluctuation of domestic producer prices and world prices for 2004-2006. Also an important factor that affects producer price is about incomplete transmission of changes in trade prices of domestic producer prices and world prices, where the incomplete transmission is mainly caused not by policy but rather by undeveloped market infrastructure. In the end, it should be mentioned that the most important sources of price fluctuation is about world prices and tariff rates that the country has the acceptance of world price.
But, it may have effect on changes in tariff rate, and there should appear main strategy which it will be caused by avoidance of daily life strategies in tariff and looking ahead to price rate systematizing. Also, long run ambition in strategies should be noticed.

 
Keyword(s): DOMESTIC AND WORLD PRODUCER PRICE, EXCHANGE RATE, MEAT, TARIFF RATE
 
References: 
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