DairyCo

Asymmetric Price Transmission Technical Report for DairyCo

Published 29 July 11

Since 2007, the dairy sector (particularly in relation to wholesale milk) has experienced wide price fluctuations coinciding with that of world commodity prices. This report presents findings of a study, using up-to-date data, to test possible asymmetries between various dairy chains.

Price transmission is tested using real market values for two retail products, cheese and liquid milk.

These values provide 'real world' examples of how prices are transmitted along the supply chain.