This presentation is part of: C10-4 (2187) Statistical and Econometric Methods for Business and Economics - III

Differences of Producer-Consumer Prices: The Spanish Agro-Alimentary Sector

José Luis Alfaro Navarro, Ph.D., Encarnacion Andres Martinez, M.B.A., Juan Antonio Mondéjar Jiménez, Ph.D., and José Mondéjar Jiménez, Ph.D. University of Castilla-La Mancha, Pza de la Universidad, 1, Albacete, 16071, Spain

Abstract

 1. Title: “Differences of  producer-consumer prices: an application to the Spanish agro-alimentary sector.” 
2. Objectives: In general the consumers are worried in the evolution about the prices although, in particular, their biggest worry is the evolution of the prices of the products that form the basket of the nourishing purchase. Sometimes, substantial differences in the variation of the prices between the beginning and the end of the nourishing chain take place, these differences generate important commercial margins. The main objective of this work is to analyse the differences between the price perceived by the producer and the price satisfied by the final consumer in a especially sensible sector to undergo variations how is the agro-alimentary.
3. Data/Methods:  
We have used the information about prices in origin and in destiny of different agro-alimentary products that is provided by the Ministry of the Environment and Rural and Marine Affairs. In this paper we analyse the existence of statistically significant differences in the application of the commercial margins.
4. Results/Expected results: The most outstanding results is derived from the existence of commercial margins more important in the agro-alimentary products that in other sectors of reference. In this way, sometimes the differences between the price perceived by the producer and the final price of market are gotten to increase exponentially.
5. Conclusion: The low prices perceived by the agro-alimentary producer cause that many crops are economically nonviable and are necessary the subsidies to regulate the market and the real production. At the same time, the final consumer finds that this subsidy are unnecessary due to the high price that he pay by these products but in more cases this price is the result of high commercial margins that have not an effect on the value chain.
Keywords: Agro-alimentary sector, level of prices, commercial margins.