PRICE INTER-RELATIONSHIPS IN THE SOUTH AFRICAN MEAT MARKET II: AN EMPIRICAL APPLICATION

Price inter-relationships in the South African meat market were analysed. The meat market as a whole shows a great measure of mutual dependence. Price leadership was found in beef. All meat prices, excepting beef, take more than a month to adapt fully to changed market conditions. It can therefore be deduced that the meat market as a whole functions in a poor form of effectivity. The total adaptation time in respect of pork, mutton and fish prices is twelve, eight and twelve weeks, respectively. It appears that beef prices lead poultry prices, but that poultry prices follow shortly after. The whole effect takes twelve weeks to filter through. It appears, however, that poultry prices have effectively succeeded in moving closely with beef prices