Spatial Price Transmission and Price Dynamics of Global Butter Export Market under Economic Shocks

Recently, the world has experienced striking economic and policy changes, subsequent uncertainties have impacts on dairy trade price fluctuations. The Global Vector Autoregressive (GVAR) methodology was established in this paper to better understand international butter export prices transmission, feedback between context changes fluctuations, link global market, energy other commodity markets. We assessed which key factors are typically associated with movements regards shocks crude oil price, palm farm-gate raw milk exchange rates, consumer index (CPI) for food of EU, New Zealand, U.S., rest (RoW), respectively. Using generalized impulse response functions, study found that decreases could be swiftly transmitted not only a home country but foreign countries. However, merely affects prices. also U.S. dollar depreciations against Euro will cause decline price. It is concluded markets well-integrated, yet Zealand highly linked.