Analyzing Price Volatility and Supply Response of Duck Eggs in the Philippines for Industry Development Implications Relative to Climate Change Adaptation

Raquel Balanay


Relative to duck's importance in the discourse of sustainable agriculture as adaptation strategy for climate change, this study analyzes with ARCH and ARDL the prices and supply behavior of duck eggs in the Philippines, respectively. The price variance estimates through ARCH gives the level of price risk that duck egg producers face in the duck industry, while the inclusion of the expected prices and price variance in the supply response model provides the response of duck egg supply to price expectation and risk.
Results indicate short-term time-varying price volatility in the duck egg market of the Philippines, signifying the presence of price risk. However, the price risk, although significant, is not strong enough to affect the production of duck eggs in the Philippines. Since the duck industry in the country is less explored and seems to have a diminishing size over the years, there is a need to look into market coordination, production stock improvement and food product development and innovation to harness its potentials. Policies are recommended to give special attention to such aspects to develop the said industry in support to sustainable conservation agriculture in the Philippines.


ARCH, ARDL, conservation farming, Price volatility, supply response

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Copyright (c) 2015 Raquel Balanay

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