Kiel Working Papers, Kiel Institute for World Economics
No 1626:
Price Transmission in the Pineapple Market – What Role for Organic Fruit?
Linda Kleemann and Alexandra Effenberger
Abstract: As consumers’ demand for organic products and especially
organic food grows, organic certification for tropical fruit is
increasingly promoted in many developing countries. Certified organic
pineapple exports only started taking off after 2005 and are rapidly
increasing. The organic and conventional fresh pineapple value chains are
dominated by certification standards and large multinational companies
respectively. The two markets, however, still differ greatly in size. We
analyze if this influences the price structure in these markets.
Specifically, the paper attempts to single out the existence and direction
of causality between the conventional and organic pineapple price using the
European pineapple market as an example. We study spatial price
transmission, i.e. the difference in prices between the markets for organic
and conventional pineapple. The results indicate the dependence of organic
market price movements on conventional ones. On the contrary, the
conventional market is not affected by this niche market
Keywords: price transmission, private standards, organic agriculture, organic markets; (follow links to similar papers)
JEL-Codes: F14,; L11,; L15,; O13,; Q13,; Q17; (follow links to similar papers)
25 pages, June 2010
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