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dc.contributor.advisor Hlongwane, J. J.
dc.contributor.advisor Belete, A. Ramoshaba, Tshegofatso 2020-01-23T07:02:10Z 2020-01-23T07:02:10Z 2019
dc.description Thesis (M. A. Agricultural Science (Agricultural Economics) -- University of Limpopo, 2019 en_US
dc.description.abstract The relationship between farm and retail prices provides insights into marketing efficiency, consumer and farmer welfare. In light of this, much focus has been given to price transmission studies. Thus, price transmission studies have become increasingly important in Sub Saharan Africa because of its nature of providing clear insights information into our markets. Despite its importance in markets, there are a few studies analysing the mechanism through which prices are determined and transmitted from farm gate to retail markets in dairy markets in South Africa. The aim of the study was to investigate and analyse the nature of price transmission mechanism of pasteurised liquid milk and cheese in South Africa. The specific objectives were to determine the correlation between the milk production and quantity of milk processed in South Africa. Furthermore, there was a need to determine the direction of causality between the farm gate, processor and retail prices of cheese and pasteurised liquid milk in South Africa. It was also necessary to determine whether the price transmission of pasteurised liquid milk and cheese was symmetric or asymmetric in South Africa. The study used secondary time series data that covered a sample size of 17 years (2000 -2016) of pasteurised liquid milk and cheese in South Africa. Pearson correlation coefficient, Granger causality test and Vector Error Correction Model were used for data analysis. Pearson correlation results revealed that milk produced is perfectly correlated with the quantity of milk processed and it was positive. The Granger causality tests revealed that there was a no causal relationship between farm gate and processor, retail and processor and also between farm gate and retail for cheese. However, signs of independent causal relationship from farm gate to retail prices were visible. It also suggested a bidirectional causal relationship between processor and farm gate prices and also between retail and processor prices of pasteurised liquid milk. On the other hand, a unidirectional causality was found from retail to farm gate prices. The VECM results for pasteurised liquid milk showed asymmetric price transmission implying that retailers and processors react quicker to price increases than to price decrease. ii It is recommended that more focus be placed on investment in emerging dairy farmers in order to increase production. This can be done through the input price subsidies, grants and education on modern technologies. The government should also implement the price monitoring cell in order to protect the consumers from unfair prices passed on by the retailers. en_US
dc.description.sponsorship Services SETA and National Agricultural Marketing Council (NAMC) en_US
dc.format.extent xii, 67 leaves en_US
dc.language.iso en en_US
dc.relation.requires Adobe Acrobat Reader en_US
dc.subject Price transmission en_US
dc.subject Dairy markets en_US
dc.subject VECM en_US
dc.subject Granger causality en_US
dc.subject.lcsh Agricultural prices -- South Africa en_US
dc.subject.lcsh Dairy products -- South Africa en_US
dc.subject.lcsh Farm produce -- Prices -- South Africa en_US
dc.title Price transmission and casuality analysis of cheese and pasteurised liquid milk in South Africa from 2000 to 2016 en_US
dc.type Thesis en_US

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