Market opportunities are increasing at a rapid pace for livestock products, fuelled by rising incomes, globalisation and urbanisation, particularly in the developing world. At the same time, these opportunities bring increased complexity in the supply channels that market, distribute, organise and govern high-value products. This begs the questions on the ability of smallholder producers to contribute to this complex process.
This study examines the price transmission mechanisms in the Bloemfontein beef market using the producer price and retail prices at four retail outlets collected over a period of 3 years. It further estimates the causality links between the producer and retail prices. The traditional (Engle-Granger) and standardized (Enders & Siklos) Augmented Dickey- Fuller procedures were used to test for co-integration and asymmetry in price transmission