Bitter or Better Future for Coffee Producers?
International Trade Forum › Num. 2/2004, Avril 2004
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Résumé
The coffee market is over-supplied. With the price of coffee at its lowest in a century, there will be winners and losers in the fierce competition for exports. Getting producers to "add value" to coffee and earn more revenue is a commonly proposed solution. However, this proposal is complex and, for many producers, unrealistic. The collapse of world coffee prices is causing many exporting countries to suffer their worst economic crisis in years. How did this happen to one of the world's largest commodities? The over-supply of coffee is due to several factors: rapid expansion of production in Viet Nam; new plantations in Brazil; higher yields; increased efficiency; and incentives to expand production, such as the liberalization of markets in the 1990s, which led to an increase in coffee farmers' share of the export price.
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Extrait
Bitter or Better Future for Coffee Producers?
The collapse of world coffee prices is causing many exporting countries to suffer their worst economic crisis in years. How did this happen to one of the world's largest commodities? The over-supply of coffee is due to several factors: rapid expansion of production in Viet Nam; new plantations in Brazil; higher yields; increased efficiency; and incentives to expand production, such as the liberalization of markets in the 1990s, which led to an increase in coffee farmers' share of the export price.
To this, add what one could call "under demand". Analysts often concentrate on over-supply and overlook the effects of emerging market trends and new technologies in th...Voir le contenu complet de ce document
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