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Price transmission and asymmetry in the Colorado potato supply chain
Love, E., & Thilmany, D. (2022). Price transmission and asymmetry in the Colorado potato supply chain. Journal of Food Distribution Research, 53(3), 1-22.
We conduct a time-series analysis of Colorado, Idaho, and national potato markets to examine price transmission and asymmetry (relative likelihood and magnitude of upward versus downward price shocks). Prices are typically driven by supply-side shocks. Colorado potato producers’ prices are influenced by Idaho and experience unfavorable asymmetry relative to downstream parties. We apply findings to the COVID-19 lockdown period as a case study to explore market behavior during that time. Identifying and noting potentially harmful price dynamics in commodity markets could help producers effectively respond to similar shocks in the future.
