Market Performance and Price Analysis of Sesame in Myanmar (in English)
Swe Mon Aung, Kanchana Sripruetkiat, and Somporn Isvilanonda
This study examines market performances and price behavior of sesame seeds in Myanmar. Data were obtained by interviewing representatives of the intermediaries of the sesame marketing channels in the townships of Mandalay, Monywa, Pakokku and Yangon during November to December 2008. Price spread, gross margin and share in the export price were calculated for each intermediary. Monthly wholesale prices from September 2002 to October 2008 of white and black sesame seeds and export price in selected markets were used for cointegration analysis. Engle and Grangerís cointegration method, error correction model and Granger causality test were applied for price analysis. Mandalay farmers got the highest gross margin for black and white sesame. Farmers received the highest gross margin for white sesame exported to China. Exporters received the highest gross margin for black sesame to Japan. Wholesalers received the highest share of the export price. Mandalay market was integrated with Monywa and Pakokku markets. All domestic markets were integrated with the export market because exporters used the domestic wholesale price to set the export price. Deviation from domestic long-run equilibrium of black sesame price could be corrected by decreasing price in Mandalay and increasing it in Pakokku market. Speed of adjustment for export price to correct the deviation from long-run equilibrium was faster than that of all domestic prices. Long-run equilibrium of both colored sesame prices could be obtained by increasing export price and decreasing domestic wholesale prices.
Keywords: sesame seed, marketing margin, cointegration, error correction model
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