Coffee Markets: New Paradigms in Global Supply and Demand
World Bank Agriculture and Rural Development Discussion Paper No. 3
150 Pages Posted: 26 Jun 2007
Date Written: March 2004
More than 50 nations, almost all in the developing world, produce and export coffee, one of the world's most valuable traded commodities. Some of these countries are dependent on coffee exports for a very significant portion of their international trade and export income. Between 17 and 20 million families are directly involved in coffee production and most are smallholders utilizing just a few hectares of land. During low price periods, evidence of considerable human hardships in many producing regions confirms coffee's importance as a primary - and sometimes only - source of cash income for many farmers.
This study assesses the condition of the world's coffee production and trade and illuminates the profound structural changes that have occurred in recent years. With ample data and thorough analysis of both production and consumption, it clearly illustrates the new trends in the coffee world. Based on this analysis and considerable public-private experience in coffee trade and economics, the authors offers solutions for reducing the impact of inevitable future price collapses and making coffee a less risky source of income for some of the world's poorest.
Keywords: developing country, commodities, exports, international trade, coffee, smallholders, sustainability, standards, policy
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