Abstract

The purpose of the article is to present the influences and their weights on the price formation of agricultural and food products in Slovenia. The influences are defined by the ratios of input and output prices and quantities of raw materials, semi-finished products, and products within the food systems of individual stakeholders in the theoretical design of price difference construction, the definition of individual stakeholders’ costs, and the assessment of the dynamics of price and quantity fluctuations from the annual average. The analysis is based on the specified econometric model bases on the Ridge formulation, which represent an analytical model of the price formation in the agri-food chains in Slovenia. The results determine and explain the weight of the impacts based on composite independent variables (based on the calculation of the relationships between individual variables with respect to the mutual responsiveness of changes–elasticity of behaviour) which were defined using available data collected in accordance with the Law on Agriculture in the Republic of Slovenia. Several new independent variables were developed to explain the effects of the independent variable representing the difference in the price of agricultural and food product between the beginning and the end in the analyzed food supply chain. The discussion connects practical actions that address three important future development components of agriculture: strengthening accessibility, competitiveness, and the stability of the position of Slovenian agriculture within the EU.

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