Cotton Quality Price Differentials From Textile Mills' Perspective: An Update

Abstract

This paper investigates price discounts and premiums paid for cotton quality attributes by textile manufacturers for three US cotton producing regions. Data collected from textile firms in the 1997/98 marketing year (1997 crop) was used in hedonic price models to estimate the quality premiums and discounts for cotton from the South, Southwest, and San Joaquin Valley regions. The analysis found significant differences in price differentials across the regions under study for that year.