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Coffee price dynamics: an analysis of the retail-international price margin
[Commodity dependence and development: suggestions to tackle the commodities problem]

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  • Atanu Ghoshray
  • Sushil Mohan

Abstract

We examine the dynamics of the margin between retail and international coffee prices from 1980 to 2018. We find no significant trend in the margin using a robust procedure for estimating a trend. Further, we establish that any deviations in the margin are transitory for the full sample as well as the periods prior to and after the demise of the ICA, but with asymmetric adjustment. One of the reasons for the observed asymmetry could be market concentration in the coffee supply chain at the coffee roasting level, which allows coffee roasters to keep a higher share of the profits.

Suggested Citation

  • Atanu Ghoshray & Sushil Mohan, 2021. "Coffee price dynamics: an analysis of the retail-international price margin [Commodity dependence and development: suggestions to tackle the commodities problem]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(4), pages 983-1006.
    • Handle: RePEc:oup:erevae:v:48:y:2021:i:4:p:983-1006.
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