Price transmission analysis of Irish butter export prices in the world butter market

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dc.contributor.authorCele, Lungelo P.en
dc.contributor.authorHennessy, Thiaen
dc.contributor.authorEakins, Johnen
dc.contributor.authorThorne, Fionaen
dc.contributor.funderTeagascen
dc.date.accessioned2025-07-17T14:43:53Z
dc.date.available2025-07-17T14:43:53Z
dc.date.issued2023-07-28en
dc.description.abstractIn 2019, Ireland was the third-largest exporter of butter in the world butter market but Irish butter prices have been more volatile compared to other Irish dairy products. Yet, empirical research that examines the market price dynamics and international competitor behavior in the butter market remains scarce. The Vector Error Correction Model was applied to data from 1970–2019, to test the extent to which changes in competitor butter prices and Irish farm milk prices had an impact on Irish butter prices. The results provide evidence of asymmetric price transmissions, Irish butter prices were more responsive to shocks in New Zealand (NZ) butter prices and Irish farm milk prices in the long-run. Declining world milk prices over time, related to milk supply, perishability and storability factors, may prevent symmetric response of Irish milk prices to changes/shocks in Irish butter prices. Moreover, different target markets and EU/NZ policies for Ireland and NZ butter may prevent symmetric response of Irish butter prices to changes/shocks from NZ butter prices. Essentially, the take home message for the butter industry is that Irish butter prices must not be studied in isolation, NZ is a major butter competitor to Ireland in the world market and NZ butter prices play a significant role on how Irish butter prices change.en
dc.description.statusPeer revieweden
dc.description.versionPublished Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.citationCele, L.P., Hennessy, T., Eakins, J. and Thorne, F. (2023) 'Price transmission analysis of Irish butter export prices in the world butter market', International Food and Agribusiness Management Review, 26(5), pp.904-921. https://doi.org/10.22434/ifamr2022.0074en
dc.identifier.doi10.22434/ifamr2022.0074en
dc.identifier.endpage921en
dc.identifier.issn15592448en
dc.identifier.issued5
dc.identifier.journaltitleInternational Food and Agribusiness Management Reviewen
dc.identifier.startpage904en
dc.identifier.urihttps://hdl.handle.net/10468/17715
dc.identifier.volume26
dc.language.isoenen
dc.publisherWageningen Academic Publishersen
dc.rights© 2023 Cele et al. Open Access.en
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjectButter export pricesen
dc.subjectFarm milk pricesen
dc.subjectHorizontal and vertical price transmissionen
dc.subjectVector Error Correction Modelen
dc.titlePrice transmission analysis of Irish butter export prices in the world butter marketen
dc.typeArticle (peer reviewed)en
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