What is the Structure of the Coffee Market: Can the Real Poor Benefit from the Coffee Trade?
AGRIS On-Line Papers in Economics and Informatics, Vol. 2, 2010
14 Pages Posted: 5 Jan 2011
Date Written: January 4, 2010
This article deals with the trade with coffee. The primary aim of the paper is to analyse the international coffee trade. Because coffee belongs to the cash crops we have focus on the production. We have analysed the structure of the trade concerning the green (not roasted) coffee, roasted coffee and coffee extracts, essences or concentrates. The analyses of production show enormous differences between developed and developing countries on the supply side. Dissimilarity appeared in the price system. Our results show that developing countries (especially least developed countries) cannot fully benefit from the international trade because they are placed just on the lowest level of the production vertical line. The results prove that there must exist strong influence of the supply chains. This is connected with the export of roasted coffee and import of the green coffee.
Keywords: Coffee Market, International Trade, Prices, Supply Chains, Developing Countries
JEL Classification: Q1
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