SPATIAL EQUILIBRIUM PRICES IN THE INTERNATIONAL BEEF MARKET

S. M. Sadiq, P. I. Singh, L. T. Yusuf, M. Lawal

Abstract


The research empirically tests for spatial equilibrium of beef prices among the major exporting countries in the world using yearly time series data sourced from FAO database. The data spanning from 1991 to 2016 covered producer prices from the four major exporting countries viz. USA, Brazil, China and India and the collected data were analysed using descriptive and inferential statistics. Evidence showed that the major exporting countries comply with the World Trade Organization (WTO) terms on agricultural commodity as the law of one price (LOP) existed between these markets in the international beef market. Furthermore, only Indian beef market (IM) had the tendency of establishing spatial equilibrium regardless of any innovation in the prices of beef that may emanate from any of the short-run equilibrium. Therefore, to strengthen the linkages and interconnectedness among the markets for faster transmission of price and management of beef commodity from surplus to deficit regions, the study recommended the need to enhance the development of market infrastructure especially the Brazil  beef market (BM), use of ICT in the transaction of the product, processing, transportation and other backward-end supply chain of bovine products as this would definitely helped in the development of single integrated international economic market for  beef in the world

Keywords


Spatial equilibrium; Prices; Cattle beef; International market

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References


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