No abstract

Given the leading role of private label brands in the fluid milk market, it is of special interest to focus on possible differences in farm-retail price transmission between private label and branded milk as well as the causes of heterogeneity. This article examines the heterogeneous effects of private label and branded products on price transmission in the fluid milk market using a panel threshold asymmetric error correction model. Results indicate that upward retail-price adjustment is faster than the downward price adjustment for both private label and branded milk. The speed of adjustment of private label products is significantly faster than branded products in three different price regimes. We further investigate the reasons of heterogeneity in farm-retail price transmission of private label milk. We find that both retailer market power and state pricing regulations contribute to the heterogeneity in asymmetric price transmission. Higher retailer market power causes retail prices of private label milk to rise faster and to fall slower. The existence of a state pricing regulation slows down the adjustment speed of retail prices of private labels back to the long-run equilibrium, regardless of whether the retail price is low or high.JEL classifications: Q11, Q13, L11, L81

In the United States, both industry and the federal government have worked to establish voluntary guidelines for how firms market food to children and to establish a threshold for the nutritional quality of foods marketed to children. The authors evaluate three US guidelines that deal with television advertising of breakfast cereals, which is both heavily advertised and a common meal item for children. They find that the majority of cereals advertised primarily to children from 2006-2008 do not meet any of the current and proposed self-regulatory nutrition guidelines, and that this is generally due to excessive sugar content. Further, children and adolescents are exposed to more advertising for products that do not meet the nutritional guidelines. We evaluate the extent to which each of the guidelines impacts advertising of cereals that are most viewed by children and purchased by households with children. The results provide insight for policy makers concerned with limiting the extent to which children see television advertising and ultimately consume unhealthy breakfast cereals.

Policymakers and value chain members often use a one-size-fits-all strategy to increase local food consumption. Our results indicate this approach may not be effective; local food buyers and nonbuyers have differing barriers to purchasing more or accessing local food. We examine the effect of demographics, health indicators, shopping location, and zip code on those barriers. Prices and availability are barriers for both buyers and nonbuyers. Consumers with higher healthy diet scores are more likely to think about local food availability. Providing specific products is a more viable strategy than creating additional purchasing venues. These results are important, as governments seek to increase local food purchases and enhance local agriculture.

This article focuses on the immediate impacts of coronavirus disease 2019 (COVID‐19) on retail prices of dairy products in the United States. Using weekly data from the US Department of Agriculture, Agricultural Marketing Service, we analyze a change in dairy prices coinciding with COVID‐19 restrictions. Using a regression discontinuity design, we find that prices of all dairy products decreased by 8% at the time that stay at home orders and changes in retail activities took place. When focusing on specific dairy categories, we find a varying degree of price declines, but also many prices that did not change. We also analyze store promotional advertisements for dairy products and find the expected decline in the number of store ads. This study has implications for policymakers concerned about the impact of COVID‐19 on retail food prices in the United States. [EconLit citations: Q11; Q18]