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The impact of the COVID‐19 pandemic on retail dairy prices
Author(s) -
Liu Yizao,
Rabinowitz Adam N.
Publication year - 2020
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.21687
Subject(s) - econlit , covid-19 , business , regression discontinuity design , agricultural economics , agriculture , marketing , economics , infectious disease (medical specialty) , geography , medline , medicine , disease , archaeology , pathology , political science , law , virology , outbreak , biology
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]