As in many other transition countries processing and marketing margins are also larger in the Slovenian meat market than respective margins in market economies. In addition, margin of the Slovenian pork chain is greater than in the beef chain. Its decline in the pork market indicates an adjustment to more competitive markets. Co-integration models are applied to estimate vertical price transmission and to examine margins and degree of competition in the meat marketing chains. Results indicate the existence of a long run equilibrium regarding vertical price transmission in the beef and pork sectors. Both the farm-gate beef and pork prices are identified as weakly exogenous in the long run. The structural tests imposing a homogeneity restriction suggest a mark-up long-run price strategy for beef and a competitive price strategy for pork after 1994 in the meat processing and marketing chains.


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