Abstract
This article examines the price relationship along the food supply chain in Slovakia. We analyse a long-run relationship between farm and retail level in the vertical chain of milk, beef, pork, chicken, potatoes and apples. A cointegration approach is used to study the long-run relationship. We test for the existence of a structural break in the time series data (Gregory Hansen test) in the period observed and allow for the existence of a non-linear relationship between prices at various levels of the vertical chain by using threshold autoregressive models. We find evidence of asymmetry in price transmission along the food supply chain.
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