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

Other author Leibtag, Ephraim.
Other author United States. Department of Agriculture. Economic Research Service.
Format Electronic
Publication Info[Washington, D.C. ] : U.S. Dept. of Agriculture, Economic Research Service, [2007]
Descriptioniv, 22 p. : digital, PDF file
Supplemental Contenthttps://purl.fdlp.gov/GPO/LPS97969
Subjects

SeriesEconomic research report ; no. 38
Economic research report (United States. Department of Agriculture. Economic Research Service) ; no. 38. ^A613631
General noteTitle from title screen (viewed on July 23, 2008).
General note"March 2007."
General noteA 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.
General noteGPO Cataloging Record Distribution Program (CRDP).
Bibliography noteIncludes bibliographical references (p. 21-22).
Technical detailsMode of access: Internet from the USDA web site. Address as of 7/23/2008: http://www.ers.usda.gov/publications/err38/err38.pdf; current access is available via PURL.
GPO item number0042-V (online)
Govt. docs number A 93.73:38

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