Saturday, August 6, 2011

Coffe Markets- Big questions

If you order your research paper from our custom writing service you will receive a perfectly written assignment on Coffe Markets- Big questions. What we need from you is to provide us with your detailed paper instructions for our experienced writers to follow all of your specific writing requirements. Specify your order details, state the exact number of pages required and our custom writing professionals will deliver the best quality Coffe Markets- Big questions paper right on time.

Out staff of freelance writers includes over 120 experts proficient in Coffe Markets- Big questions, therefore you can rest assured that your assignment will be handled by only top rated specialists. Order your Coffe Markets- Big questions paper at affordable prices with!

Coffee Markets- Big Questions

1. Coffee is produced competitively because

· It is the world’s second most valuable commodity.

Write your Coffe Markets- Big questions research paper

· Producers are in the developing world- many producers- perfect competition.

· Lucrative market easy way of obtaining foreign currency.

. Coffee Growers can add value by

· Growing different types of Coffee, such as green coffee, Columbian and Costa Rican

· Sell their coffee as fair trade coffee, adds value because consumers see it as ethically friendly e.g. Caf� Direct, Oxfam, Starbucks brewing fair trade coffee.

· Coffee farmers have little influence on the price of Coffee. They have no choice but to accept the price on offer. This will mean that their livelihoods are very dependent on the behaviour of demand and supply in worlds markets, which in turn may depend on the expectations of dealers in world commodity markets.

. The profitability of Coffee has fallen due to

· Oversupply Caused by new producers entering market.

Bumper harvests e.g. Brazil and Vietnam.

· Producers breaking ranks with others on policy e.g. Vietnam with government subsidies and World Bank support.

· Consumer move from low grade commercial Coffee- rising income

Changing tastes

· Coffee is a mature market � little growth in demand, thus greater effect on price.

· Breaking of International Coffee Agreement in 18. This was a cartel that kept the


. Impact of falling Coffee Prices on Stakeholders

· Growers switch to more lucrative products e.g. Illegal substances (Cocaine, Marijuana.)

· Countries receive less foreign currency- needed to pay off debts and invest in infrastructure. May turn to new commodity such as Tobacco and Sugar cane.

Both points can cause the Cobweb theory- prices of these products will fall in the long term. The diagram below shows this (P.T.O)

· Holders of Coffee futures buy more because of low prices and hope for price stimulation. This is a real gamble

5. Ways of overcoming Low profitability

· Establish a cartel = all producers together in organisation e.g. the Association of Coffee Producing Countries. Try and establish a minimum price for the commodity

· Restrict supply or even destroy low quality beans e.g. Brazil throwing beans into Atlantic. These will force the price into an increase.

· Allow coffee to be sold as fair trade coffee e.g. Caf� direct so that farmers get a more substantial % of price the roasted coffee is sold for.

Please note that this sample paper on Coffe Markets- Big questions is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Coffe Markets- Big questions, we are here to assist you. Your persuasive essay on Coffe Markets- Big questions will be written from scratch, so you do not have to worry about its originality.

Order your authentic assignment from and you will be amazed at how easy it is to complete a quality custom paper within the shortest time possible!


Post a Comment

Note: Only a member of this blog may post a comment.