RT Journal Article
SR Electronic
A1 Syrovátka, Pavel
T1 Price development on fluid milk processing market and level of final consumer demand for this product
JF Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
YR 2015
VO 52
IS 3
SP 59
OP 68
DO 10.11118/actaun200452030059
UL https://acta.mendelu.cz/artkey/acu-200403-0005.php
AB The article is focused on the analysis of impact of the final consumer for milk on the price development on the fluid milk processing market. The impact research was based on the dynamic model of intermediate demand function in inverse form. There were examined two approaches for the dynamisation of developed models - the implicit and explicit approach. Implicit dynamic model, which was developed on the base of linear inverse demand function with time lag explanatory variable, wasn't acceptable in the view of the achieved results of statistical and economical verification. According to this developed model, the quarterly lag in the examined vertical demand linkage did not play statistically significant role. Among explicit dynamic models, the best model with respect to results of T-test of B&lt;sub&gt;2&lt;/sub&gt; parameter got the following form:p&lt;sub&gt;t&lt;/sub&gt; = +18.8854 - 0.8636 . q&lt;sub&gt;t&lt;/sub&gt;&lt;sup&gt;*&lt;/sup&gt; + 0.1783 . t - 2.7336 . 10&lt;sup&gt;-3&lt;/sup&gt; . t&lt;sup&gt;2&lt;/sup&gt;; (t = 1, 2, ..., 32).This developed model with the explicit dynamisation fit theoretical economical condition of Law of diminishing demand and its transmission in the researched section of the product vertical - milk. The intensity of the impact of final consumer demand for milk on the price development on the market for fluid milk processing was evaluated on the base of value of B&lt;sub&gt;2&lt;/sub&gt; and on base of elasticity coefficient FP&lt;sub&gt;t&lt;/sub&gt;(q&lt;sub&gt;t&lt;/sub&gt;&lt;sup&gt;*&lt;/sup&gt;). In view of B&lt;sub&gt;2&lt;/sub&gt;, the rise of the consumer demand for milk by 1 litre implied the decrease in the prices of litre of milk on the market for fluid milk processing approximately by 0.90 CZK. According to FP&lt;sub&gt;t&lt;/sub&gt;(q&lt;sub&gt;t&lt;/sub&gt;&lt;sup&gt;*&lt;/sup&gt;), the increase of the consumer demand for milk by 1 % bring out in average the fall of the prices per litre of milk on the fluid milk processing market by almost 0.60 %.