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Costly Choices: Does the U.S. Retail Market Reward Coffee Origin Labeling?

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  • Hoehn, John P

Abstract

The paper presents estimated single origin premiums based on retail prices for specialty coffees offered in the U.S. market from 1997 to 2014. The data include retail price, the quantity sold in a retail package and label descriptions that identify 28 different origins. Label descriptions also include information on cultural practices such as natural and organic production, market channels such as Fair Trade and whether the wholesale source was a specialty auction. In addition, data for each coffee contains a score for roast type and a cup rating determined by professional tasters. The overall data set permits and evaluation how coffee origin affects market values, as well as how different coffee supply chain segments affect value, including the coffee producer, market channel and roaster.

Suggested Citation

  • Hoehn, John P, 2016. "Costly Choices: Does the U.S. Retail Market Reward Coffee Origin Labeling?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235891, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235891
    DOI: 10.22004/ag.econ.235891
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    References listed on IDEAS

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    1. Teuber, Ramona, 2010. "Estimating the Demand for Sensory Quality – Theoretical Considerations and an Empirical Application to Specialty Coffee," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(03), pages 1-14, September.
    2. M. Laura Donnet & Dave D. Weatherspoon & Charles B. Moss, 2010. "Measuring Food Product Differentiation by Quality Ratings: A Cross‐Entropy Analysis of Specialty Coffee e‐Auctions," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 122-137, February.
    3. Adam P. Wilson & Norbert L.W. Wilson, 2014. "The economics of quality in the specialty coffee industry: insights from the Cup of Excellence auction programs," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 91-105, November.
    4. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
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    6. Golan, Elise H. & Kuchler, Fred & Mitchell, Lorraine, 2000. "Economics Of Food Labeling," Agricultural Economic Reports 34069, United States Department of Agriculture, Economic Research Service.
    7. Teuber, Ramona, 2010. "Estimating the Demand for Sensory Quality – Theoretical Considerations and an Empirical Application to Specialty Coffee," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(3).
    8. Teuber, Ramona, 2007. "Geographical Indications of Origin as a Tool of Product Differentiation : The Case of Coffee," Discussion Papers 33, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
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