IDEAS home Printed from https://ideas.repec.org/a/ags/jloagb/311370.html
   My bibliography  Save this article

Price Adjustment and Market Power in the Colombian Milds Coffee Market

Author

Listed:
  • Li, Xi-Le
  • Sanghain, Sayed H.

Abstract

The coffee industry has been characterized by a few large buyers as well as lower and more volatile producer prices since the 1990s. This paper investigates the price adjustment between producer and world coffee prices along the supply chain of coffee. The results show that the producer price and the world price are adjusted asymmetrically and the causality is unidirectional from the world price to the producer price. Market power, a possible explanation for the asymmetric price adjustment, significantly affects the price relationship between upstream and downstream prices. These results have important implications for policy-makers and producers. Better organization of coffee producers can increase their bargaining power with the buyers in the market, which may result in higher prices at the farm level.

Suggested Citation

  • Li, Xi-Le & Sanghain, Sayed H., 2015. "Price Adjustment and Market Power in the Colombian Milds Coffee Market," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 33(1).
    • Handle: RePEc:ags:jloagb:311370
    DOI: 10.22004/ag.econ.311370
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/311370/files/Price%20Adjustment%20and%20Market%20Power%20in%20the%20Colombian%20Milds%20Coffee%20Market.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.311370?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jloagb:311370. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeaggea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.