Ramona Teuber

Are Russian Wheat Exporters Able to Price Discriminate? Empirical Evidence from the Last Decade

Significant changes have taken place in the world wheat market in the last decade. Russia, a former net wheat importer, has become a leading exporter with a world market share of 11.2% in 2009. This increasing importance and the discussion about the establishment of a grain-OPEC consisting of Ukraine, Kazakhstan and Russia has raised the issue of pricing behaviour of Russian wheat exporters. Although there are several studies on the pricing behaviour of Canadian and US wheat exporters, there is none so far for Russian wheat exporters. This study provides a quantitative analysis of the pricing behaviour of Russian wheat exporters, explicitly taking account of the export tax imposed between 2007 and 2008. We employ a pricing-to-market (PTM) model on quarterly Russian wheat-export data, covering the period from 2002 to 2010 and 25 export destinations. Our findings indicate that (i) Russian wheat exporters exercised PTM in only a few importing countries over the whole time period, and (ii) PTM behaviour was more pronounced in the aftermath of the export tax period (i.e. 2008–2010) than before.

ECONOMIC GROWTH AND NUTRITION TRANSITION: AN EMPIRICAL ANALYSIS COMPARING DEMAND ELASTICITIES FOR FOODS IN CHINA AND RUSSIA

This study provides empirical evidence on the link between economic growth and nutrition transition in two emerging economies, China and Russia. Both countries have experienced rising average incomes, accompanied by an increasing rate of nutrition-related chronic diseases in recent years. Given the regional heterogeneity between these two countries, we analyze the extent to which income growth as a major driver of nutrition transition has a significant effect on the consumption of different food aggregates and how these effects differ between Chinese and Russian consumers. Our results indicate that with increasing household incomes over time the demand for carbohydrates decreases, while the demand for meat and dairy products, as well as fruits increases. This is a development generally known as nutrition transition. Further, we estimate a Quadratic Almost Ideal Demand System (QUAIDS) for nine different food aggregates for China and Russia. Our results indicate that in both countries all food aggregates have positive expenditure elasticities and are thus normal goods. Moreover, our results indicate that in 2008/2009 meat is still a luxury good in China yet a necessity good in Russia. For 2009, the highest own-price elasticities in China are found for non-meat protein sources and dairy products. Within the meat group, beef, poultry and mutton have the highest price elasticities in China. In Russia, the milk and dairy group, together with the vegetable group, is the most price-elastic food group in 2008. In line with the definition of a nutrition transition, our overall results underscore the finding that income growth in China and Russia tends to increase the demand for animal-based products much stronger than, for example, the demand for carbohydrates. Despite being a positive signal for problems of malnutrition in rural China, this trend of increasing meat consumption might further increase the incidence of chronic diseases in urban areas since there is convincing scientific evidence that increasing meat consumption, especially red and processed meat, is associated with an increased risk of chronic diseases.

Approaches And Methods For The Econometric Analysis Of Market Power: A Survey And Empirical Comparison

This study discusses two widely used approaches in the New Empirical Industrial Organization (NEIO) literature and examines the strengths and weaknesses of the Production‐Theoretic Approach (PTA) and the General Identification Method (GIM) for the econometric analysis of market power in agricultural and food markets. We provide a framework that may help researchers to evaluate and improve structural models of market power. Starting with the specification of the approaches in question, we compare published empirical studies of market power with respect to the choice of the applied approach, functional forms, estimation methods and derived estimates of the degree of market power. Thereafter, we use our framework to evaluate several structural models based on PTA and GIM to measure oligopsony power in the Ukrainian dairy industry. The PTA‐based results suggest that the estimated parameters of oligopsony power are significantly different from zero, while GIM‐based results do not indicate any evidence of oligopsony market power in the Ukrainian dairy industry. Moreover, estimations results vary substantially due to the employed estimation procedure.

Economic growth and the demand for dietary quality: Evidence from Russia during transition

The increasing incidence of nutrition-related chronic diseases worldwide has raised peoples awareness of dietary quality. Most existing studies on the topic of changing nutrition patterns measure dietary quality by single macronutrient indicators or anthropometric outcomes. However, such an approach is often too narrow to provide a picture of overall dietary quality and is sometimes even misleading. This study contributes to the existing literature by taking into account that the analysis of dietary quality comprises two dimensions: the adequate intake of vitamins and minerals, as well as the moderate intake of nutrients that increase the risk of chronic diseases. Thereby, we apply Grossmans health investment model to the analysis of the demand for dietary quality, explicitly addressing the different dimensions of dietary quality and the intertemporal character of health investments. We apply our approach to Russia using data from the Russia Longitudinal Monitoring Survey from 1996 to 2008. Our results show that intake levels of vitamins and minerals as well as saturated and total fatty acids increased after 1998 along with economic recovery, while the intake of fiber decreased. Our econometric results imply an income elasticity of vitamins and minerals of 0.051, and an income elasticity of fats of 0.073. Overall, our results are in line with an ongoing nutrition transition in the Russian Federation, which is marked by decreasing deficiencies in vitamins and minerals, as well as the increasing consumption of fats with its accompanying negative health consequences.

Review of a priori dietary quality indices in relation to their construction criteria

Abstract A multitude of indices measure the healthiness of dietary patterns. Because validation results with respect to health outcomes do not sufficiently facilitate the choice of a specific dietary quality index, the decision of which index to use for a particular research objective should be based on other criteria. This review aims to provide guidance on which criteria to focus upon when choosing a dietary index for a specific research question. A review of 57 existing specifications of dietary quality indices was conducted, taking explicitly into account relevant construction criteria explicated in the Organisation for Economic Co-operation and Development handbook on constructing composite indicators. Index construction choices regarding the following criteria were extracted: theoretical framework, indicator selection, normalization and valuation functions, and aggregation methods. Preferable features of dietary indices are discussed, and a summarizing toolbox is provided to help identify indices with the most appropriate construction features for the respective study aim and target region and with regard to the available database. Directions for future efforts in the specification of new diet quality indices are given.

Is Tajikistan a Potential Market for Genetically Modified Potatoes

Consumer perception and willingness to pay for genetically modified foods have been extensively studied in recent years. However, until so far there is little empirical evidence for genetically modified food acceptance among Central Asian consumers. This article contributes to existing literature in this field by exploring consumers’ acceptance and willingness to pay for genetically modified potatoes in Tajikistan. A dichotomous-choice contingent valuation methodology is used as a primary empirical tool. The data was collected in a major city of Tajikistan. The results indicate that more than half of survey participants are not aware of genetically modified potatoes. Yet, the majority of consumers expressed a positive or neutral opinion about this particular product and for two-third of respondents no risks are associated with genetically modified potatoes. These results highlight that Tajik consumers seem to be less risk-averse towards genetically modified food than consumers in Europe. This study explores consumer preferences for genetically modified potatoes in Tajikistan. A contingent valuation method is applied to measure consumers’ willingness to pay for this particular genetically modified product based upon socio-demographic variables as well as predictors related to individuals’ attitudes and perceptions. Findings of the paper show the relevance and possibility to introduce and market nonconventional potato in a Central Asian market of Tajikistan.

Consumers’ Willingness to Pay for Health Benefits in Food Products: A Meta-Analysis

This article analyzes the existing literature on consumers’ marginal willingness to pay (MWTP) for health benefits in food products. Results indicate that the presence of a health claim does not only increase MWTP for health benefits in foods but also reduces heterogeneity among MWTP estimates. Hypothetical methods significantly positively affect MWTP. The most popular product category “dairy” negatively influences MWTP. The popular health claim of “lowering cholesterol” has a significantly positive influence on MWTP. In addition, our review highlights that existing studies significantly differ in their setup, which renders the inference of clear-cut conclusions rather problematic.

Consumers’ Response to Genetically Modified Ingredients in Processed Food in an Emerging Economy

ABSTRACT Genetically modified (GM) foods are available in many countries including post–Soviet Union countries. However, empirical evidence on consumer acceptance for this region is scarce. In this study, we investigate consumers’ willingness to purchase a processed food containing GM ingredients. For this purpose, a consumer survey was conducted in 2015 in Tajikistan. In many aspects, our results confirm previous empirical findings showing that women are more skeptical toward GM food and a higher level of respondents’ education and the presence of minors in households are negatively correlated with their willingness to purchase a processed food containing GM ingredients. Moreover, a higher risk perception of GM food is negatively associated with the probability to purchase and consume such foods. However, our results indicate that risk perceptions of GM food seem to be relatively low in comparison to other studies with 41.5% of Tajik respondents connecting no risks with GM food. This result is surprising given the existing knowledge about post–Soviet Union consumers who are usually assumed to reject GM food due to their strong focus on naturalness.

Are We Moving Towards Functioning Agricultural Markets and Trade Relations

We introduce a special feature on the functioning of international agricultural markets. This feature is motivated by the increased interest in the functioning of commodity markets raised by unprecedented price turbulences since 2008, major structural changes through changed roles of emerging economies and related concerns regarding food security. We argue that the delineation of non-functioning markets from markets that adequately adjusted to adverse framework conditions lacks theoretical foundation. We discuss the relevance of some results on institutions for agricultural markets in emerging and transition countries. A synthesis of the articles included in the special feature is provided by highlighting the selection of topics that span a topical range covering price formation on world and domestic markets, market power and trade policy modelling.

Farmers’ export market participation decisions in transition economies: a comparative study between Armenia and Uzbekistan

ABSTRACT The Russian import ban on Western food products has stimulated a discussion about whether and how countries in Central Asia and Caucasus might benefit from this political decision by expanding their agrifood exports to Russia. Given this background, our study compares farmers’ willingness to participate in export markets in Armenia and Uzbekistan. Discussions are based on the analysis of surveys of 400 farmers from each country conducted in the spring of 2015. The results show that farmers already participating in local markets have a higher motivation to engage in the production of exportable commodities when a sudden export opportunity emerges. Beyond this general finding, the relative importance of farm and infrastructure characteristics were identified under different commercialization levels. Although both types of factors have been identified as important determinants in the existing literature, our analysis provides further evidence. We demonstrate that variables related to farm characteristics play a rather crucial role in more subsistence-oriented small-scale farming systems as found in the case of Armenia. In contrast, infrastructure may become more important than farm endowments in more commercially oriented farming systems such as observed in Uzbekistan.