Cost pass-through in the U.S. coffee industry / Ephraim Leibtag [and others].

Format:

Book

Government document

Contributor:

Leibtag, Ephraim

United States. Department of Agriculture. Economic Research Service

Series:

Economic research report (United States. Department of Agriculture. Economic Research Service) ; no. 38.

Economic research report ; no. 38

Language:

English

Subjects (All):

Coffee.

Coffee industry--United States.

Coffee industry.

Genre:

Statistics

Physical Description:

1 online resource (iv, 22 pages).

Place of Publication:

[Washington, D.C.] : U.S. Dept. of Agriculture, Economic Research Service, [2007]

Notes:

Title from title screen (viewed July 23, 2008).

"March 2007."

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 the current quarter. If a cost change persists for several quarters, it will be incorporated into manufacturer prices approximately cent-for-cent 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. Coffee manufacturers do not appear to take advantage of manufacturing and production cost variation to raise retail prices; retail prices respond the same to both increases and decreases in costs of coffee beans.

Includes bibliographical references (pages 21-22).

Electronic reproduction. [Place of publication not identified]: HathiTrust Digital Library. 2023.

Other Format:

Cost pass-through in the U.S. coffee industry

OCLC:

176037427

Access Restriction:

Use copy Restrictions unspecified