An analysis of sheep meat supply response in Greece

Abstract

This study focuses an annual production and inventory decisions of Greek
sheep producers by modelling producer behaviour in the context of the capital
stocks theory. Producers response was analysed via the use of econometric procedures.
Aspects of lamb and sheep (mouton) supply, inventory level changes and
ewe breading were tackeled one at a time. The results show that prices influence
producer's decisions in opposite directions. Specifically, where - as lamb meat pricheese
ces positively affect production, sheep meat prices as well as milk and
feta prices are inversely related to the volume of production. It seems that the
demand for stock building finally balances with that for slaughtering.