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"

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.


Issue Date:
2001-05
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/169378
Total Pages:
40
Series Statement:
Issue Papers
22




 Record created 2017-04-01, last modified 2017-08-27

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