Coffe Markets- Big questions

Coffee Markets- Big Questions

1. Coffee is produced competitively because:

· It is the world’s second most valuable commodity.

· Producers are in the developing world- many producers- perfect competition.

· Lucrative market: easy way of obtaining foreign currency.

2. Coffee Growers can add value by:

· Growing different types of Coffee, such as green coffee, Columbian and Costa Rican

· Sell their coffee as fair trade coffee, adds value because consumers see it as ethically friendly e.g. Café Direct, Oxfam, Starbucks brewing fair trade coffee.

· Coffee farmers have little influence on the price of Coffee. They have no choice but to accept the price on offer. This will mean that their livelihoods are very depend...