What does this research mean for the field?

During periods of high inflation and price caps in Hungary, incomplete pork price transmission is concentrated at the consumer-facing retail stage, characterized by strong upstream pass-through from producers to retail procurement but weak downstream pass-through to consumers. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To evaluate vertical price transmission dynamics in the Hungarian pork-leg supply chain during a period of rapid food inflation and government retail-market interventions.

August 29, 2026AgribusinessOpen Access

Price Caps, Retail Margins and Pork Price Transmission in Hungary

View Full Paper

Ask AI

Bookmark

Authors

IFImre Fertő SPSzilárd Podruzsik

Discussion

Member takes

Overview

Time-series analysis reveals compressed downstream pass-through under retail price caps in the pork supply chain, indicating policy interventions primarily restrict consumer-facing margins.

Key Points

To evaluate vertical price transmission dynamics in the Hungarian pork-leg supply chain during a period of rapid food inflation and government retail-market interventions.
Analyzed weekly price data from 2021 week 7 to 2026 week 19 across producer-to-retail procurement and retail procurement-to-consumer market stages.
Estimated pass-through and asymmetry using linear and nonlinear Autoregressive Distributed Lag (ARDL) models, threshold diagnostics, and Newey-West HAC-robust inference across policy regimes.
Baseline long-run elasticity was strong upstream from producer to procurement prices (elasticity 0.785) but weak downstream from procurement to net consumer prices (elasticity 0.275).
The food-price-cap period coincided with sharply compressed downstream pass-through while upstream transmission remained substantial, with no robust evidence of long-run asymmetry.

Cite This Study

Fertő et al. (2026) studied this question.

synapsesocial.com/papers/6a9299958e5d7d1fc0c11920 https://doi.org/10.1002/agr.70153

View Full Paper

Ask AI

Bookmark

August 29, 2026AgribusinessOpen Access

Price Caps, Retail Margins and Pork Price Transmission in Hungary

View Full Paper

Ask AI

Bookmark

Authors

IFImre Fertő SPSzilárd Podruzsik

Discussion

Member takes

Overview

Time-series analysis reveals compressed downstream pass-through under retail price caps in the pork supply chain, indicating policy interventions primarily restrict consumer-facing margins.

Key Points

To evaluate vertical price transmission dynamics in the Hungarian pork-leg supply chain during a period of rapid food inflation and government retail-market interventions.
Analyzed weekly price data from 2021 week 7 to 2026 week 19 across producer-to-retail procurement and retail procurement-to-consumer market stages.
Estimated pass-through and asymmetry using linear and nonlinear Autoregressive Distributed Lag (ARDL) models, threshold diagnostics, and Newey-West HAC-robust inference across policy regimes.
Baseline long-run elasticity was strong upstream from producer to procurement prices (elasticity 0.785) but weak downstream from procurement to net consumer prices (elasticity 0.275).
The food-price-cap period coincided with sharply compressed downstream pass-through while upstream transmission remained substantial, with no robust evidence of long-run asymmetry.

Cite This Study

Fertő et al. (2026) studied this question.

synapsesocial.com/papers/6a9299958e5d7d1fc0c11920 https://doi.org/10.1002/agr.70153

View Full Paper

Ask AI

Bookmark