- Title
- Vertical price transmission of wheat in South Africa
- Creator
- Swapi, Asemahle
- Subject
- Commerce
- Date Issued
- 2024-00
- Date
- 2024-00
- Type
- Masters theses
- Type
- text
- Identifier
- http://hdl.handle.net/11260/11040
- Identifier
- vital:75880
- Description
- The ability of markets to communicate food price signals at different levels of marketing chains is critical to understanding the nature of the competition in the chain, and development of strategies to address challengers of information symmetry and food insecurity. This study examined vertical transmission of wheat price among the main value chain, looking at the pricing behaviour of certain role players in the wheat production/supply and distribution of bread which is a major staple food consumed in South Africa. A nonlinear autoregressive distributed lag model (NARDL) model was used to analyse the yearly time series data for the period of 2000 to 2022. The results of the stationarity test showed that all variables were of order one, I(1). The study used two pairs, namely farmgate price and retail price and farmgate price and wholesale price, to examine the existence of asymmetry between these prices, with rainfall and temperature as control variables. The results indicate the existence of positive long-run asymmetry of 35,9% between farmgate price of wheat and retail price of bread, and 3,49% asymmetry between farmgate price and wholesale price of wheat. In order to develop informed policies on food security, this study suggests that the government should enhance regular access to data and sustain its monitoring and communication of food price information across the whole country. The other thing that is recommended by the study is the provision of subsidies for wheat farmers to help the wheat industry, reduce the cost of bread production, and make bread more affordable and accessible for consumers.
- Description
- Thesis (Masters) -- Faculty of Economic and Financial Sciences, 2024
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (96 pages)
- Format
- Publisher
- Walter Sisulu University
- Publisher
- Faculty of Economic and Financial Sciences
- Language
- English
- Rights
- Faculty of Economic and Financial Sciences
- Rights
- All Rights Reserved
- Rights
- Open Access
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Swapi A- MCOM Dissertation (1).pdf | 1 MB | Adobe Acrobat PDF | View Details Download |