AgEcon Search

AgEcon Search >
       United States Department of Agriculture >
          Economic Research Service >
             Economic Research Report >

Please use this identifier to cite or link to this item:

Title: How Retail Beef and Bread Prices Respond to Changes in Ingredient and Input and Costs
Authors: Roeger, Edward
Leibtag, Ephraim S.
Authors (Email): Roeger, Edward (
Leibtag, Ephraim (
Keywords: pass through
farm prices
supply chain
price transmission
price response
Issue Date: 2011-02
Series/Report no.: Economic Research Report
Number 112
Abstract: The extent to which cost changes pass through a vertically organized production process depends on the value added by each producer in the chain as well as a number of other organizational and marketing factors at each stage of production. Using 36 years of monthly Bureau of Labor Statistics price indices data (1972-2008), we model pass-through behavior for beef and bread, two retail food items with different levels of processing. Both the farm-to-wholesale and wholesale-to-retail price responses are modeled to allow for the presence of structural breaks in the underlying long-term relationships between price series. Broad differences in price behavior are found not only between food categories (retail beef prices respond more to farm-price changes than do retail bread prices) but also across stages in the supply chain. While farm-to-wholesale relationships generally appear to be symmetric, retail prices have a more complicated response behavior. For both bread and beef, the pass through from wholesale to retail is weaker than that from farm to wholesale.
Institution/Association: United States Department of Agriculture>Economic Research Service>Economic Research Report
Total Pages: 28
Collections:Economic Research Report

Files in This Item:

File Description SizeFormat
Recommend this item

All items in AgEcon Search are protected by copyright.



Brought to you by the University of Minnesota Department of Applied Economics and the University of Minnesota Libraries with cooperation from the Agricultural and Applied Economics Association.

All papers are in Acrobat (.pdf) format. Get Adobe Reader

Contact Us

Powered by: