Price asymmetry on oilseed supply chain in Bulgaria
DOI:
https://doi.org/10.61308/YZCL7755Keywords:
price asymmetry, supply chain, stock markets, sunflower oil, index methodologyAbstract
The aim of the analysis is to study the price asymmetry through the value chain covering the production of sunflower seeds, the wholesale and retail supply of sunflower oil, as well as to compare the prices of Bulgarian wholesale of sunflower oil with FOB prices in the Black Sea region. The price asymmetry is assumed as an discrepant and disproportionate movement of two prices, and is measured by elaborated index method named after asymmetric price transmission. The idea of the study is to find out not only the extension of price integrity between consequential stages from production to the final consumer in vegetable oil supply chain but as well as to expose the qualitative importance of the asymmetry. The measured price asymmetry index shows in the prevailing cases insignificant asymmetry in the observed period from 2017 to mid-2025 at almost all stages of the value chain. At the same time, in particular time spans, mainly in the second half of the entire period, the price asymmetry increases to a medium level, which reveals the presence of turmoils that affect price integration. It is very often found out that agricultural prices lag behind and are not integrated with prices for crushing industries and traders, thus there is preposition for distorted distribution of value between parties. It is supposed that this fact is among causes for the lower profitability and lower value added of agricultural production compared to other economic value stages.
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