Margins of Fair Trade Wine along the Supply Chain: Evidence from South African Wine in the U.S. Market

2019 ◽  
Vol 14 (3) ◽  
pp. 274-297
Author(s):  
Robin M. Back ◽  
Xinyang Liu ◽  
Britta Niklas ◽  
Karl Storchmann ◽  
Nick Vink
Keyword(s):  
Supply Chain ◽  
South African ◽  
Fair Trade ◽  
The United States ◽  
Export Prices ◽  
Retail Prices ◽  
Pass Through ◽  
Matching Models ◽  
The Cost ◽  
Cost Effect

AbstractIn this paper, we analyze profit margins and markups of Fair Trade (FT) wines sold in the United States. We are particularly interested in whether and to what extent the FT cost impulse in production is passed along to the supply chain. We draw on a limited sample of about 470 South African wines sold in Connecticut and New Jersey in the fall of 2016; about 90 of them are certified FT. For these wines we have free on board export prices, wholesale prices, and retail prices, which allows us to compute wholesale and retail margins and analyze the FT treatment effect. We run OLS, 2SLS, and propensity score matching models and find evidence of asymmetrical pricing behavior. While wholesalers seem to fully pass-through the FT cost effect, retailers appear to amplify the cost effect. As a result, at the retail level, FT wines yield significantly higher margins than their non-FT counterparts. (JEL Classifications: L11, L31, L43, L81, Q17)

A study of cane supply benefits associated with ad hoc mechanical harvesting to mitigate cutter absenteeism

2013 ◽  
pp. 532-538 ◽  
Author(s):  
Muhammad Kadwa ◽  
Carel N Bezuidenhout
Keyword(s):  
Supply Chain ◽  
South African ◽  
Ad Hoc ◽  
Sugar Mill ◽  
The South ◽  
Optimum Performance ◽  
Kwazulu Natal ◽  
Cane Quality ◽  
The Cost

The Eston Sugar Mill is the newest in the South African KwaZulu-Natal sugar belt. Like most other mills, it can be argued that there are inefficiencies in the supply chain due to systematic issues, which reduce optimum performance. It was alleged that mill processes are slowed, or stopped, on Sundays, Mondays, as well as some Tuesdays and Wednesdays, due to pay-weekends, because of the associated cutter absenteeism. This increases the length of the milling season (LOMS), increases milling costs and reduces the average cane quality for the season. Data on cane deliveries to the Eston Mill, over a period of five seasons, were analysed to study the magnitude of the problem. It was statistically verified that cane shortages occur immediately after payweekends and it was conservatively estimated that cutter absenteeism occurs between 25–29 days per season, which increases the LOMS by six to ten days. The associated cost of this problem equated to an average of US$159,500 (approximately EUR120,000) per milling season. In this paper, an alternative harvesting system scenario is suggested, assuming that mechanical harvesters be used after a pay-weekend, to mitigate the impacts of cutter shortages. However, the solution is calculated to be risky. When the cost of new equipment was considered, only two of the five seasons were able to justify the associated costs.

Behaviour-based Pricing in the Green Product Supply Chain

2021 ◽  
Author(s):  
Kanying Liu ◽  
Wei Li ◽  
Erbao Cao ◽  
Yong Lan
Keyword(s):  
Supply Chain ◽  
Market Share ◽  
Consumer Preferences ◽  
Green Product ◽  
Green Products ◽  
Environmental Attributes ◽  
Cost Coefficient ◽  
Retail Prices ◽  
Green Sensitivity ◽  
The Cost

Abstract We study the pricing strategies of supply chains of green products under behaviour-based pricing. Considering consumer preferences for green product functional attributes and environmental attributes, we construct a two-stage supply chain. The optimal behaviour pricing of green products is solved, and the effects of green sensitivity and the cost coefficient on the optimal price are analysed. We find that when consumers are less sensitive to the greenness, with the increase in the market share of green products, green product retailers will increase the loyalty price. An increase in greenness sensitivity and a decrease in the greenness cost coefficient will increase the wholesale prices and retail prices of green products. Consumer attention to the greenness and a decrease in the initial market share of green products will be conducive to promoting the greenness and improving the environment. Consumers' emphasis on the greenness of their products will lead to higher profits for the manufacturers and retailers of green products.

scholarly journals Credit Rationing and Pass-Through in Supply Chains: Theory and Evidence from Bangladesh

2021 ◽  
Vol 13 (3) ◽  
pp. 202-236
Author(s):  
M. Shahe Emran ◽  
Dilip Mookherjee ◽  
Forhad Shilpi ◽  
M. Helal Uddin
Keyword(s):  
Supply Chain ◽  
Standard Model ◽  
Government Regulation ◽  
Trade Credit ◽  
Credit Rationing ◽  
Credit Access ◽  
The Standard Model ◽  
Retail Prices ◽  
Credit Frictions ◽  
Pass Through

Traders are often blamed for high prices, prompting government regulation. We study the effects of a government ban of a layer of financing intermediaries in edible oil supply chain in Bangladesh during 2011–2012. Contrary to the predictions of a standard model of an oligopolistic supply chain, the ban caused downstream wholesale and retail prices to rise, and pass-through of the changes in imported crude oil price to fall. These results can be explained by an extension of the standard model to incorporate trade credit frictions, where intermediaries expand credit access of downstream traders. (JEL L13, L14, L66, O13, Q11, Q13, Q17)

scholarly journals An Ocean of Promise

2017 ◽  
Vol 139 (04) ◽  
pp. 30-35
Author(s):  
Dan Ferber
Keyword(s):  
Supply Chain ◽  
Financial Risk ◽  
Wind Farm ◽  
The United States ◽  
Offshore Wind ◽  
Levelized Cost Of Electricity ◽  
Offshore Wind Power ◽  
Financing Costs ◽  
Technical Innovations ◽  
The Cost

This article reviews the growth of the wind industry and the need for engineering expertise and technical innovations for it. Establishing an offshore wind supply chain would spur the development of better ways to manufacture turbine parts, ship them to sea, assemble them, and maintain them. This could create jobs for engineers of all stripes, including civil, electrical, and mechanical engineers. As the offshore wind power industry grows, costs continue to fall, in part because engineers in the industry are developing better and cheaper technologies. The article also highlights that by guaranteeing large and sustained markets for offshore wind, policies can entice large turbine vendors, blade manufacturers, and other major offshore wind vendors to bid on more US projects. After investigating conditions in the industry in Europe and the United States, a research team reported in early 2015 that put-in-place policies to reduce the cost and financial risk of building an offshore wind farm could slash project financing costs and ultimately cut the levelized cost of electricity by 50%. Experience and better logistics are making the European offshore wind supply chain more efficient.

Michaels Craft Stores: Integrated Channel Management and Vendor-Retailer Relations

2017 ◽  
pp. 1-18
Author(s):  
Anne Coughlan ◽  
Lindsey M. Piegza
Keyword(s):  
United States ◽  
Supply Chain ◽  
State Of The Art ◽  
The United States ◽  
Arts And Crafts ◽  
Channel Management ◽  
Art Practices ◽  
The World ◽  
Training Courses ◽  
The Cost

Michaels Craft Stores is the largest arts and crafts retailer in the United States and in the world. Its CEO, Michael Rouleau, wants to expand the chain to 1,000 stores by 2006. The key constraint is the lack of sophistication among Michaels' supplier base, which is made up of over 1,000 suppliers, many of which are small, creative companies with little computer or logistics knowledge. As a result, the cost of running Michaels' supply chain is high. Describes the company's efforts to build the sophistication of its suppliers through educational Vendor Flow Training courses that teach suppliers how to adopt state-of-the-art practices for improved efficiency in supplying their channel.

scholarly journals CREDIT MARKET DISTORTIONS, ASSET PRICES AND MONETARY POLICY

2012 ◽  
Vol 18 (3) ◽  
pp. 631-650 ◽  
Author(s):  
Damjan Pfajfar ◽  
Emiliano Santoro
Keyword(s):  
Asset Prices ◽  
Rational Expectations ◽  
Inflation Targeting ◽  
Bank Lending ◽  
Real Activity ◽  
Cost Channel ◽  
Pass Through ◽  
The Cost ◽  
Borrowing Cost ◽  
Cost Effect

We study the conditions that ensure rational expectations equilibrium (REE) determinacy and expectational stability (E-stability) in a standard sticky-price model augmented with the cost channel. We allow for varying degrees of pass-through of the policy rate to bank-lending rates. Strong cost-side effects limit the size of the policy rate response to inflation that is consistent with determinacy, so that inflation-targeting policies may not be capable of ensuring REE uniqueness. In this case it is advisable to combine policy rate responses to inflation with an appropriate reaction to the output gap and/or firm profitability. The negative reaction of real activity and asset prices to inflationary shocks adds a negative force to inflation responses that counteracts the borrowing cost effect and prevents expectations of higher inflation from becoming self-fulfilling.

Wage Rates in the Early National Period: Philadelphia, 1785–1830

1968 ◽  
Vol 28 (3) ◽  
pp. 404-426 ◽  
Author(s):  
Donald R. Adams
Keyword(s):  
United States ◽  
Economic History ◽  
The United States ◽  
Early National Period ◽  
Early American ◽  
Wage Rates ◽  
United States Economy ◽  
Retail Prices ◽  
History Of ◽  
The Cost

Recent scholarly work in the economic history of the precivil War United States has produced an impressive array of statistical data. Estimates of income, output, capital stock, and population growth and distribution have been generated utilizing a variety of empirical sources and statistical techniques. But, despite these welcome advances in our knowledge and understanding of the early American economy, a number of important statistical records continue to elude scholars of the period. Information concerning immigration before 1820, the occupational distribution of the labor force, employment statistics, the cost of living, and the level and movement of retail prices and wages would, if available, prove valuable additions to our growing knowledge of the United States economy before 1860.

Demonstrating Nutrient Cost Gradients: A Brooklyn Case Study

2014 ◽  
Vol 84 (5-6) ◽  
pp. 244-251 ◽  
Author(s):  
Robert J. Karp ◽  
Gary Wong ◽  
Marguerite Orsi
Keyword(s):  
Low Income ◽  
Energy Content ◽  
Food Selection ◽  
The United States ◽  
United States Department ◽  
Micronutrient Deficiencies ◽  
Caloric Density ◽  
Low Income Families ◽  
The Cost ◽  
The Impact

Abstract. Introduction: Foods dense in micronutrients are generally more expensive than those with higher energy content. These cost-differentials may put low-income families at risk of diminished micronutrient intake. Objectives: We sought to determine differences in the cost for iron, folate, and choline in foods available for purchase in a low-income community when assessed for energy content and serving size. Methods: Sixty-nine foods listed in the menu plans provided by the United States Department of Agriculture (USDA) for low-income families were considered, in 10 domains. The cost and micronutrient content for-energy and per-serving of these foods were determined for the three micronutrients. Exact Kruskal-Wallis tests were used for comparisons of energy costs; Spearman rho tests for comparisons of micronutrient content. Ninety families were interviewed in a pediatric clinic to assess the impact of food cost on food selection. Results: Significant differences between domains were shown for energy density with both cost-for-energy (p < 0.001) and cost-per-serving (p < 0.05) comparisons. All three micronutrient contents were significantly correlated with cost-for-energy (p < 0.01). Both iron and choline contents were significantly correlated with cost-per-serving (p < 0.05). Of the 90 families, 38 (42 %) worried about food costs; 40 (44 %) had chosen foods of high caloric density in response to that fear, and 29 of 40 families experiencing both worry and making such food selection. Conclusion: Adjustments to USDA meal plans using cost-for-energy analysis showed differentials for both energy and micronutrients. These differentials were reduced using cost-per-serving analysis, but were not eliminated. A substantial proportion of low-income families are vulnerable to micronutrient deficiencies.

Use of cold tolerant eucalyptus species as a partial replacement for southern mixed hardwoods

TAPPI Journal ◽  
2012 ◽  
Vol 11 (7) ◽  
pp. 29-35 ◽  
Author(s):  
PETER W. HART ◽  
DALE E. NUTTER
Keyword(s):  
Potential Method ◽  
The United States ◽  
Partial Replacement ◽  
Growth Time ◽  
Eucalyptus Species ◽  
Cold Tolerant ◽  
Hardwood Pulp ◽  
Time Required ◽  
The Cost ◽  
Operational Data

During the last several years, the increasing cost and decreasing availability of mixed southern hardwoods have resulted in financial and production difficulties for southern U.S. mills that use a significant percentage of hardwood kraft pulp. Traditionally, in the United States, hardwoods are not plantation grown because of the growth time required to produce a quality tree suitable for pulping. One potential method of mitigating the cost and supply issues associated with the use of native hardwoods is to grow eucalyptus in plantations for the sole purpose of producing hardwood pulp. However, most of the eucalyptus species used in pulping elsewhere in the world are not capable of surviving in the southern U.S. climate. This study examines the potential of seven different cold-tolerant eucalyptus species to be used as replacements for, or supplements to, mixed southern hardwoods. The laboratory pulping and bleaching aspects of these seven species are discussed, along with pertinent mill operational data. Selected mill trial data also are reviewed.

Sign in / Sign up

Export Citation Format

Share Document