2025, Volume 28, Paper 14
ISSN: 2209-6612
A Review of Price Levelling and Price Averaging Behaviour in the Domestic Meat Market
Garry Griffith – School of Agriculture, Food and Ecosystem Sciences, University of Melbourne
Selwyn Heilbron – School of Agriculture, Food and Ecosystem Sciences, University of Melbourne; SG Heilbron Economics and Policy Consulting
Abstract
The smoothing of prices along the domestic value chain from producers to retailers is known as ‘price levelling’ and it and the related behaviour of ‘price averaging’ is a well-known feature of price transmission in the meat industry in Australia and elsewhere. This behaviour has been analysed over a period of almost 60 years. Given the recent concerns of livestock producers and anecdotal evidence provided by industry organisations, the current industry context is described and these previous analyses are reviewed. In a companion paper the practices of price levelling and price averaging are examined using a recent set of quarterly Australian farm and retail prices for beef and lamb.
Keywords: price levelling, price averaging, beef prices, lamb prices, Australia
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