Cost pass-through in the U.S. coffee industry
By: Ephraim Leibtag ... [et al.].
Contributors: Leibtag, Ephraim.
Series: Economic research report -- 38.; Economic research report (United States. Dept. of Agriculture. Economic Research Service) -- no. 38.
Publisher: U.S.Dept. of Agriculture, Economic Research Service
Published: 2007
Place of publication: Washington, D.C
Language: eng
Number of pages: 22
Subjects: Coffee industry -- United States.; Coffee -- Prices -- United States.; Coffee -- Prices -- United States -- Statistics.
Genres: Statistics.
Description: A rich data set of coffee prices and costs was used to determine to what extent changes in commodity costs affect manufacturer and retail prices. On average, a 10-cent increase in the cost of a pound of green coffee beans in a given quarter results in a 2-cent increase in manufacturer and retail prices in that quarter. If a cost change persists for several quarters, it will be incorporated into manufacturer prices approximately cent-forcent with the commodity-cost change. Given the substantial fixed costs and markups involved in coffee manufacturing, this translates into about a 3-percent change in retail prices for a 10-percent change in commodity prices. We do not find robust evidence that coffee prices respond more to increases than to decreases in costs.
Notes: "Report from the Economic Research Service"

Caption title.

"March 2007."

Includes bibliographical references (p. 21-22).

Also available on the Internet.