Analyzing the Efficiency of Iran's red and white meat market in recent years

Document Type : Research Paper

Authors

1 Department of Agricultural Economics, Faculty of Economics and Agricultural Development, University of Tehran, Karaj, Iran

2 Department of Agricultural Economics, University of Tehran, Karaj, Iran

3 University of Tehran, Faculty of Agriculture and Natural Resources, Faculty of Economics and Agricultural Development, member of the academic team

4 Research Assistant Professor & DG/APERDRI

10.22059/ijaedr.2025.382884.669321

Abstract

Examining the efficiency of the market in the transmission of information between products and different levels is of great importance in terms of policy and welfare. Due to the position of meat in the household food basket and the significant number of producers, this study examines the price transmission between chicken meat, beef, and lamb at three levels: wholesale, slaughterhouse, and retail. To achieve the research objectives, the error correction model and monthly data during the period from May 2024 to January 2014 were used. The results showed that price transmission in the chicken and beef markets from wholesale to retail, and in the retail market from beef to chicken, lamb to beef, and at the slaughterhouse and wholesale levels from the lamb market to chicken, was symmetric. In other levels and markets, the transmission was asymmetric. If the price of beef and lamb increases by one unit at the retail, slaughterhouse, and wholesale levels, the price of chicken will increase by 0.09, 0.13, 0.21, 0.04, 0.33, and 0.21 units, respectively. This increase in the price of lamb at these levels will lead to an increase of 0.88, 0.82, and 0.82 units in the price of beef, respectively. According to the results, the speed of price transmission between red meat markets is high, indicating relatively better efficiency of these markets. Therefore, regulatory priorities in these markets should be based on information transparency. It is recommended to use information tools and institutions to better transmit information to create market integration. Another reason for price fluctuations in meat products is the cost of production. It is recommended to use management tools to manage production costs and adopt appropriate policies to reduce shocks to various markets.

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