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Factors Affecting Sugar-Containing-Product Prices

Karen DeLong and Carlos O. Trejo-Pech

Journal of Agricultural and Applied Economics, 2022, vol. 54, issue 2, 334-356

Abstract: United States (US) sugar policy buffers domestic sugar producers against subsidized and dumped world market sugar resulting in generally higher US sugar prices compared to world prices. A fixed-effects panel regression is used to estimate factors associated with US sugar-containing-product (SCP) retail prices. SCPs are defined by sucrose being a primary ingredient. Explanatory variables in the regression were US sugar prices, SCP characteristics, firm size, firm past financial performance, and macroeconomic variables. Macroeconomic variables, firm past financial performance, and SCP weight were statistically significant in explaining SCP prices. Increases in US sugar prices were not associated with higher SCP prices.

Date: 2022
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Handle: RePEc:cup:jagaec:v:54:y:2022:i:2:p:334-356_8