A PowerPoint® Deconstruction of the Farm and Retail Price Analysis Presented in "The Public Interest and Private Economic Power: A Case study of the Northeast Dairy Compact"

Ronald Cotterill () and Andrew Franklin

No 22, Issue Papers from University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy

Abstract: In this paper we interpret and explain in more detail the economic analysis contained in our report, The Public Interest and Private Economic Power: A Case Study of the Northeast Dairy Compact. This paper contains a graphic deconstruction of the price analysis that is presented in that report. It also focuses on evidence for the conclusions that Stop & Shop was a price leader in the market power game and that Garelick and private label demand are sufficiently inelastic to support a leadership role for Suiza Foods Inc. Before moving directly to the Report, let us briefly look more generally at the issue of farm-to-retail price transmission in milk markets. Figure 1 displays the retail price and the farm level price for the San Francisco market area. Note how fluctuation in the farm level price is transmitted forward to fluctuation in the retail price in a fairly regular and consistent fashion. This is a textbook example of how farm prices in a competitive channel affect retail prices.

Keywords: Dairy; pricing; dairy compact; new england (search for similar items in EconPapers)
Pages: 40 pages
Date: 2001-05
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zwi:ipaper:22

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