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Argentinian Retail Coffee Market: Effects of Instability on Pricing

Leandro Meller, Juan M.C. Larrosa, Juan I. Uriarte and Gonzalo R. Ramírez Muñoz de Toro
Additional contact information
Juan M.C. Larrosa: Universidad Nacional del Sur
Juan I. Uriarte: Universidad Nacional del Sur/IIESS
Gonzalo R. Ramírez Muñoz de Toro: Hyperia

No 266, Working Papers from Red Nacional de Investigadores en Economía (RedNIE)

Abstract: Coffee ranks among the most important drinks in the World. In Argentina it has an increasing place in the household consumption pattern. As in most foods markets, attributes play key roles in pricing but in a context of increasing inflation and exchange rate devaluations pricing becomes more complex. We analyze how micro-determinants affect the rate of price variation in the retail coffee sector under increasing inflation. We identify a predictable strong influence of black market and official exchange rate but also in diverse attributes such mainly brands and also processing, grain, and variant. We also present a detailed impact of the timing in pricing:weekly, monthly, yearly, and even lockdown effects are presented and discussed.

Pages: 18 pages
Date: 2023-08
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