Ernst Engels Entdeckung vor 150 Jahren

Consumer/Household Economics, Demand and Price Analysis,

Oligopsony Power in the Ukrainian Milk Processing Industry: Evidence from the Regional Markets for Raw Milk

Most of the studies based on the New Empirical Industrial Organization (NEIO) approach use the industry data to estimate the degree of market power at the national level. Yet, only a few empirical studies presented the results that measure the degree of market power at the regional level and found the existence of market power in the regional markets. While the fact is that there is an extensive evidence for the existence of potential oligopsony market power in the Ukrainian milk processing industry (price cartels and geographic market sharing among milk processing enterprises, interference of the state authorities, higher concentration on regional markets), the estimation results of the market structure model at the national level did not produce any evidence suggesting the exercise of oligopsony power (the estimated parameter of oligopsony power is close to zero and statistically insignificant). The objective of this study is to estimate the degree of oligopsony power in the regional market for raw milk. The estimation results of the market structure model at the regional level indicate the existence of oligopsony power in nine out of the twenty three regions of Ukraine.New Empirical Industrial Organization (NEIO); Oligopsony Power; Ukraine;

Empirical Analysis of Potential Oligopsony Power and Production Technology in the Ukrainian Milk Processing Industry under Conditions of Economic Transition

The objective of this study is to provide an empirical analysis of potential market power of the Ukrainian milk processing industry in the market for raw milk. The article is based on the New Empirical Industrial Organization (NEIO) approach and pays special attention to the production technology of the sector. In NEIO studies of market power in the food processing industry the production technology is typically assumed to be of a neoclassical type with simple properties like, e.g., constant returns to scale. Properties of this kind, however, are likely not to prevail in most transition countries of Eastern Europe because of serious distortions in factor usage mainly due to institutional deficiencies. Therefore, the analysis of this study is based on the more general representation of the production technology by a translog production function. The econometric model used to measure the degree of oligopsony power of the Ukrainian milk processing industry is estimated on the basis of monthly data. The model did not produce any evidence suggesting the exercise of market power by the milk processing industry in the estimation period from January 1996 to December 2003. This empirical result is consistent with the low operating rate of the Ukrainian milk processing industry and relatively small concentration ratio at the national level. However, it may be appropriate to conduct similar analyses on a regional level, since the concentration of milk processing plants and the structure of agricultural farms in the regions of Ukraine are quite different.milk processing industry, new empirical industrial organization (NEIO), oligopsony power, production technology, transition economy, Ukraine, Industrial Organization, Livestock Production/Industries,

ECONOMETRIC ANALYSIS OF MARKET POWER ON THE UKRAINIAN MARKET FOR RAW MILK

The main emphasis of the present study is the empirical analysis of buyer market power of the Ukrainian milk processing industry on the market for raw milk. For an econometric analysis of pricing behaviour on the Ukrainian market for raw milk a sectoral, comparative-static structural model, based on the New Empirical Industrial Organization (NEIO) framework has been constructed. The model consists of a short-term supply function for raw milk and a first order condition for profit maximizing raw milk demand of the milk processing enterprises. The results of the econometric estimation of the model do not show any evidence for the existence of market power in the Ukrainian milk processing industry on the national level for the estimation period January 1996 to December 2003. However, these results do not exclude existence of market power on the regional level.Marketing,

Sources and utilization of foodstuffs in Belarusian households: results of the Grodno households survey

The paper is a documentation of a (non-representative) survey on the food situation of households in the Grodno region, Belarus. It covers the year between September 2000 and August 2001. The focus of the survey was on the sources of food in the households (purchase, own production, and receipt in non-monetary transactions between households) and on the utilization (consumption, feed use, sale, unpaid transfers to other households, and spoilage). The paper describes the survey design and the scope and quality of the compiled data set and it presents results of descriptive analyses. The survey households consume a well balanced diet based on potatoes and vegetables as the main staple food. 75 percent of the households use small land plots for food production and a third of the households keep livestock. Household food production provides an important contribution to food available in the households and the value of the produce represents a considerable part of average household income. Most of the self-produced food is consumed or given away in non-monetary transactions. Prices of foodstuffs differ in part significantly between different points of sale and between rural and urban areas. -- G E R M A N V E R S I O N: Dieses Diskussionspapier dokumentiert eine (nicht-repräsentative) Befragung über die Ernährungssituation von Haushalten in der Region Grodno in Weißrussland. Die Befragung wurde zwischen September 2000 und August 2001 durchgeführt. Der Fragebogen behandelt vorwiegend das Aufkommen von Nahrungsmitteln aus verschiedenen Quellen (Kauf, Eigenproduktion und den Erhalt von Nahrungsmitteln durch nicht-monetären Transfer zwischen Haushalten) und die Verwendung (Verzehr, Verfütterung, Verkauf, nicht-monetäre Vergabe und Verderb). Das Papier beschreibt das Studiendesign sowie den Umfang und die Qualität der erhobenen Daten. Weiterhin werden die Ergebnisse deskriptiver Analysen präsentiert. Die Ernährung der befragten Haushalte basiert auf Kartoffeln und Gemüse, wobei Kartoffeln das wichtigste Grundnahrungsmittel darstellen. 75 % der Haushalte nutzen kleine Landflächen zur Nahrungsmittelproduktion und ein Drittel hält Nutztiere. Die Eigenproduktion in den Haushalten leistet einen wichtigen Beitrag zum Nahrungsmittelaufkommen und der Produktionswert repräsentiert einen bedeutsamen Teil des durchschnittlichen Haushaltseinkommens. Der größte Teil der produzierten Nahrungsmittel wird verzehrt, gefolgt von der Vergabe in nichtmonetären Transaktionen. Die Nahrungsmittelpreise unterscheiden sich teilweise signifikant zwischen verschiedenen Einkaufsquellen und zwischen städtischen und ländlichen Gebieten.Belarus,Grodno,foodstuffs,food,nutrition,diet,household survey,Weißrussland,Belarus,Grodno,Ernährung,Nahrungsmittel,Haushaltsbefragung

Retained Ownership of Beef Cattle When Considering Production and Price Risk

Livestock Production/Industries,

Oligopsony Power in the Ukrainian Milk Processing Industry: Evidence from the Regional Markets for Raw Milk

Most of the studies based on the New Empirical Industrial Organization (NEIO) approach use the industry data to estimate the degree of market power at the national level. Yet, only a few empirical studies presented the results that measure the degree of market power at the regional level and found the existence of market power in the regional markets. While the fact is that there is an extensive evidence for the existence of potential oligopsony market power in the Ukrainian milk processing industry (price cartels and geographic market sharing among milk processing enterprises, interference of the state authorities, higher concentration on regional markets), the estimation results of the market structure model at the national level did not produce any evidence suggesting the exercise of oligopsony power (the estimated parameter of oligopsony power is close to zero and statistically insignificant). The objective of this study is to estimate the degree of oligopsony power in the regional market for raw milk. The estimation results of the market structure model at the regional level indicate the existence of oligopsony power in nine out of the twenty three regions of Ukraine

Oligopsony Power in the Ukrainian Milk Processing Industry: Evidence from the Regional Markets for Raw Milk

Most of the studies based on the New Empirical Industrial Organization (NEIO) approach use the industry data to estimate the degree of market power at the national level. Yet, only a few empirical studies presented the results that measure the degree of market power at the regional level and found the existence of market power in the regional markets. While the fact is that there is an extensive evidence for the existence of potential oligopsony market power in the Ukrainian milk processing industry (price cartels and geographic market sharing among milk processing enterprises, interference of the state authorities, higher concentration on regional markets), the estimation results of the market structure model at the national level did not produce any evidence suggesting the exercise of oligopsony power (the estimated parameter of oligopsony power is close to zero and statistically insignificant). The objective of this study is to estimate the degree of oligopsony power in the regional market for raw milk. The estimation results of the market structure model at the regional level indicate the existence of oligopsony power in nine out of the twenty three regions of Ukraine

Cowpea in evolving livestock systems

Demand for livestock products has been increasing through much of the semi-arid tropics and will likely continue to increase along with the use of purchased feedstuffs. As smallholder livestock systems evolve and become more market oriented, the type of diets fed to livestock may change and the importance of feed marketing may increase. Mixed crop–livestock systems are key to meeting this increasing livestock product demand and cowpea (Vigna unguiculata [L.] Walp.) fodder (haulms) is an important component of these systems in semi-arid regions of the tropics where its high nutritional quality allows it to be used as a supplement to livestock diets based on cereal stovers and other low-quality forages. Improving the nutritional quality of cowpea fodder for use by livestock is important to improving the productivity and profitability of these mixed farming systems. Legume fodders will remain an important part of changing livestock diets and the development of cowpea varieties that better feed both people and their farm animals will give farmers new and better choices for improving levels and efficiency of livestock production. Cowpea breeding programs have worked toward producing dual-purpose varieties that emphasize the production of grain and fodder since the late 1980s and have produced several that have become well accepted when tested on-farm. Systematic screening of cowpea genetic resources is important for advancing development of dual-purpose varieties. Involvement of cultivar release agencies and seed production programs are also important to advance the use of improved dual-purpose crop varieties

Cowpea and groundnut haulms fodder trading and its lessons for multidimensional cowpea improvement for mixed crop livestock systems in West Africa

Cowpea is an important legume crop in Africa, valued highly for its grain and also haulms, which are a tradable commodity in fodder markets. Fodder market surveys in Northern Nigeria showed that groundnut haulms were priced higher than cowpea haulms, probably because of their superior nutritive value. The economic value of haulms has prompted cowpea breeders and livestock nutritionists to explore haulm fodder traits as additional selection and breeding criteria. Fifty cowpea genotypes cultivated across five locations in Nigeria in 2013 and 2014 were evaluated for food fodder traits. Significant (P < 0.05) genotypic dependent variations were observed in yields (kg/ha) of grains (537–1082) and haulms (1173–3368), though significant (P < 0.05) effects of location and year were observed. Grain and fodder yield had a tendency to be positively correlated (r = 0.26, P = 0.07). Haulms were analyzed for nitrogen (N), fiber fractions, in vitro digestibility, and metabolizable energy content. Highly significant variations were observed in all genotypic and livestock nutrition traits, although location and year had significant effects. Trade-offs between grain yield and haulm fodder quality traits were largely absent and haulm acid detergent lignin and grain yield were even inversely correlated (r = -0.28, P = 0.05), that is high grain yielders had decreased haulm lignin. However, haulm N and grain yield also tended to be negatively associated (r = -0.26, P = 0.07). Haulm fodder quality traits and haulm yield were mostly positively correlated (P < 0.05). Broad sense heritabilities for grain and fodder yield were 0.50 and 0.29, respectively, while heritability for haulm fodder quality traits ranged from 0.61 to 0.67, providing opportunities for concomitant increase in grain yield and haulm fodder quality traits. Selection of the 10 highest ranking genotypes for grain yield, haulm yield, haulm N, and haulm in vitro organic matter digestibility showed selection groups overlapping, suggesting that multi-trait selection is feasible. Economical evaluation showed that choice of primary traits is context specific, highlighting the need for identifying and targeting appropriate genotypes to fit different production systems. Considering haulm quantity and quality as traits of economic value can increase overall plant value in mixed crop-livestock systems