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Unformatted text preview: Siming Zhu AEM 4420: Emerging Markets October 22, 2008 Case Summary: Global Coffee Trade Problem: Around the world, over 25 million people have their primary soruce of income tied to the highly volatile price of coffee beans. While coffee farmers have historically been able to support their families, the surge in world coffee supply over the last few decades have drastically depressed the market price, leaving many coffee farmers impoverished. However, the coffee industry itself is still booming. So who are the beneficiaries of over 70 billion dollars in annual revenues generated from coffee sales? The intermediaries, known as roasters, that turn raw green coffee beans into shades of brown are the receivers of high profit margins in the coffee industry. Over the years, many have argued that coffee farmers deserve a portion of the profits that roasters currently enjoy. The issue at hand is not necessarily sharing roasters’ profits, it is more so a matter of providing coffee farmers with a livable wage and better working conditions, while...
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This note was uploaded on 01/20/2009 for the course AEM 4420 taught by Professor Christy,r. during the Fall '06 term at Cornell.
- Fall '06