MARKET POWER IN LITHUANIAN, LATVIAN AND ESTONIAN DAIRY SECTORS: THE CASE OF RAW MILK MARKET

The main objective of the study was to identify the market power in the raw milk markets of the Baltic countries in 2004-2014, as well as to compare the dairy supply chain segments (dairy farmers and dairy industry) between Lithuania, Latvia and Estonia, which have quite similar natural conditions f...

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Veröffentlicht in:TRANSFORMATIONS IN BUSINESS & ECONOMICS 2017-01, Vol.16 (2), p.89
Hauptverfasser: Stalgiene, Aldona, Jedik, Andrej, Viira, Ants-Hannes, Krievina, Agnese
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container_start_page 89
container_title TRANSFORMATIONS IN BUSINESS & ECONOMICS
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creator Stalgiene, Aldona
Jedik, Andrej
Viira, Ants-Hannes
Krievina, Agnese
description The main objective of the study was to identify the market power in the raw milk markets of the Baltic countries in 2004-2014, as well as to compare the dairy supply chain segments (dairy farmers and dairy industry) between Lithuania, Latvia and Estonia, which have quite similar natural conditions favourable for dairy sector -- one of the most important and competitive sectors of agriculture and food industry in all three countries. The concern was generated by increasing market concentration in dairy industry, which could result in lower milk prices for farmers due to increasing market power. Estimation of market power was based on the New Empirical Industrial Organisation (NEIO) models. Empirical research results showed that there was an oligopsony market power in the Lithuanian, Latvian and Estonian raw milk market. Multicriteria complex comparison of dairy farm performance showed that Lithuanian farmers were in relatively better situation, but Estonian farmers showed the best growth rate. Similar comparison results were also found in dairy industry.(Web URL:http://web.a.ebscohost.com/abstract?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=16484460&AN=123251660&h=z4eC9jTCsF8tIJOEJrpov2P%2b6KIev%2firQqcwp21KIIek4PrdYA8Xad5eAVYwvcc%2bL39wH1o9g6FbQXSl3ue7HA%3d%3d&crl=f&resultNs=AdminWebAuth&resultLocal=ErrCrlNotAuth&crlhashurl=login.aspx%3fdirect%3dtrue%26profile%3dehost%26scope%3dsite%26authtype%3dcrawler%26jrnl%3d16484460%26AN%3d123251660)
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source EBSCOhost Business Source Complete
subjects Comparative analysis
Comparative studies
Dairy farming
Dairy farms
Dairy industry
Farmers
Food processing industry
Growth rate
Market concentration
Milk
Power
Prices
Supply
Supply chain management
title MARKET POWER IN LITHUANIAN, LATVIAN AND ESTONIAN DAIRY SECTORS: THE CASE OF RAW MILK MARKET
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