Hierarchical cluster analysis in the European Union based on the beef wholesale carcass price [article]

Georgios Blouchos, University Of Ioannina, University Of Ioannina
This study investigates empirically the price situation of the European beef market. Specifically, it utilizes weekly wholesale beef average carcass price data for fifteen European markets and applies the method of hierarchical clustering. In the frame of this application, some of the most fundamental concerns of cluster analysis are presented and discussed thoroughly, while the results of the empirical analysis suggest: First, the DTW distance measure and the choice of the ward linkage method
more » ... ard linkage method seemed to fit better in the hierarchical agglomerative algorithm concerning our dataset. Second, there is fragmentation and weak connection among the countries of the EU concerning the beef price characteristics. Third, countries playing a major role in the beef market have the highest prices in Europe, while countries less powerful facing lower prices. Fourth, most of the same countries constituting a significant part in the European beef sector face smaller variability concerning their prices. These results relate to the integration and increasing competitiveness which the European Union has set as its goals. However, these are some first indications by simply using hierarchical analysis and further analysis to verify them is necessary.
doi:10.26268/heal.uoi.9784 fatcat:kvrwxb5vgve4tocaqj6b2o6asq