Price transmission analysis of Irish butter export prices in the world butter market

Abstract In 2019, Ireland was the third-largest exporter of butter in world market but Irish prices have been more volatile compared to other dairy products. Yet, empirical research that examines price dynamics and international competitor behavior remains scarce. The Vector Error Correction Model applied data from 1970–2019, test extent which changes farm milk had an impact on prices. results provide evidence asymmetric transmissions, were responsive shocks New Zealand (NZ) long-run. Declining over time, related supply, perishability storability factors, may prevent symmetric response changes/shocks Moreover, different target markets EU/NZ policies for NZ Essentially, take home message industry is must not be studied isolation, a major play significant role how change.