Price Transmission in the Milk Portuguese Market

This paper aims to analyze milk price transmission along the food chain in Portugal, temporally and spatially. The results show that the volatility of retail prices is small but happens after 2008. The farm gate price does not change when the price of packaged milk changes. On the mainland, price transmission does not occur but it does in the Azores. In intensive systems, the risk of collapse is greater than in extensive systems, where the volatility of prices reflects the process of market adjustment.