FOOD CHAIN PRICE DIFFERENCES – THEORETICAL AND METHODOLOGICAL ASPECTS

Abstract

The article is for illustrative purposes and presents the general situation of price differences in the food chain in theoretical and methodological aspects. The main objective of the research was to assess the market situation of the purchase of agricultural products against a background of prices in retail stores. The research was conducted using the observational method in mid-2021. The subject of the study were the 20 most popular agricultural products, purchased directly from the agricultural producer and through retail chains as products ready for sale unchanged from the moment of purchase. The volatility of prices between different links in the food chain was also determined using Pearson’s linear correlation. The differences in the estimated percentage mark-up of selected retail chains in relation to the obtained values of the price relation index are presented. It was found that the analyzed price differences constituted a complex research problem and were conditioned by many determinants. The relation between the prices offered for agricultural products in purchase and retail prices was often 200%. The main reason for the price differences was the extensive supply chain between the farmer and the chain of stores. The results of the correlation of price volatility allowed to conclude that there was a phenomenon related to the transfer of price risk in the scope of subsequent links of the food chain.

Keywords

• agricultural prices
• retail prices
• Pearson’s correlation coefficient
• farms
• agriculture in Poland