Price Linkages Between Feed and Food: Case of Maize and Poultry Products in Gujarat

The study investigated the price linkages and market integration between maize, a primary poultry feed ingredient, and poultry products (egg and chicken) in Gujarat. Using daily market price data from January 2022 to November 2023, the research employed advanced econometric tools viz., Augmented Dickey-Fuller (ADF) tests, Granger causality, Johansen co-integration, and Vector Error Correction Model (VECM). The analysis revealed strong spatial and vertical integration among the maize markets of Panchmahal, Dahod, and Aravalli, and confirmed significant price transmission with poultry markets of Ahmedabad (egg) and Surat (chicken). Bidirectional causality is observed between maize and poultry prices, indicating efficient backward and forward linkages in Gujarat’s feed and food value chain. The findings highlight the marketing efficiency of maize and poultry markets, and underscore the role of price integration in supporting agribusiness and rural livelihoods in the state.