Coffee Information

Coffee Information - Mugged Roots of Crisis Market...

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Mugged Roots of Crisis Market restructuring: managed markets to flooded markets (oversupply) End of cartel New entrants into market Lagging demand in Western markets Power imbalances in market: poor farmers vs profiting roasters (Big Three) Poor Farmers- 1-2 hectares of land on average Low international prices Little power to negotiate with traders/middle men Profiting roasters: most of value is added after reaches roasters Brand power Cost control Use of blends: lowest cost combination of coffees New technologies and techniques that drive down quality Mask bitterness of low quality robusta Intensive farming techniques degrade quality and environment Failure of rural development Lack of alternatives to coffee as a cash crop due to policy failure: Costs high to replace crops Domestic markets to low to make money All commodity prices on a downward slide- Commodities are low on market SAPs focusing on export-led growth & liberalization- SAP’s do not help the rural poor Too little processing and packaging in producer countries
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Coffee Information - Mugged Roots of Crisis Market...

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