The economics of quality in the specialty coffee industry: Insights from the Cup of Excellence auction programs

Journal Article (Journal Article)

This study estimates price determinants for specialty green coffee auctions using records from the 2004-2010 Cup of Excellence programs hosted by the Alliance for Coffee Excellence. While some literature on coffee has focused on certifications and sustainability labels, the discussion of price determinants has been limited. This article replicates one of the first publications on price determinants and formulates a new model to more accurately describe the market. We include the necessary additional variables and estimate the model using a truncated maximum likelihood estimation technique. While sensory quality has a strong effect on price, the highest premiums stem from obtaining a top rank compared to other coffees from the same country, and North American buyers are more responsive to sensory quality than buyers in Asian and European markets.

Full Text

Duke Authors

Cited Authors

  • Wilson, AP; Wilson, NLW

Published Date

  • November 1, 2014

Published In

Volume / Issue

  • 45 / S1

Start / End Page

  • 91 - 105

Electronic International Standard Serial Number (EISSN)

  • 1574-0862

International Standard Serial Number (ISSN)

  • 0169-5150

Digital Object Identifier (DOI)

  • 10.1111/agec.12132

Citation Source

  • Scopus