: External and Internal factors which affect coffee retail prices in the United States are
studied. The study uses ordinary least squares regression and panel data analysis to analyze
factors from United States and four major coffee exporting countries (Brazil, Mexico, Guatemala
and Columbia). Soda consumption in the U.S has a positive impact on coffee retail prices unlike
tea, which has a negative correlation. The study uses a time series data from 1990 to 2010.
Income share of poorest 20 percent of the population has a negative correlation with retail coffee
prices in the U.S. Economic performance of both exporting and the U.S fuels coffee retail prices.
International Coffee Agreement and NYBOT coffee prices/spot prices are the two most
important factors that impact retail prices of coffee in the United States.