The Coffee Crisis - 1069 Words

| | 2/5/2012 2/5/2012 Tamara Young To begin, The Coffee Crisis is about an acute coffee crisis and how it threatens millions of small coffee farmers around the world and is putting economic growth, as well as social and political stability, at risk in scores of coffee producing countries in Central and South America, Africa and Asia. In 2004, the governments of coffee producing countries were considering how to respond to the dramatic decline in coffee prices caused in part by a large increase in coffee production in Brazil and Vietnam. Coffee was the main source of income for roughly 25 million farmers, mostly small land holders, in Latin America, Africa, and Asia. Coffee prices had hit 40 year lows in 2001 and had remained†¦show more content†¦The crisis in the coffee sector continues. Its impact cannot be understated, since coffee constitutes the livelihood of an estimated 25 million families around the world. In world trade, coffee is the second leading commodity, after petroleum. The worldwide coffee market spans some 71 countries, of which 51 are significant producers and 20 are key consumers. Prices have not kept up with production costs to the extent needed to make participation in the coffee business profitable for most producers, even though the crop year 2003-2004 witnessed a worldwide decrease in production. (Central America - The Coffee Crisis: Effects and Strategies for Moving Forward, 1992) In coffee producing countries, which account for over 26% of world consumption, the situation is more diverse. In some countries, prices of coffee have fallen in local currency and consumption may therefore be stimulated. In Brazil, the largest coffee market among producing countries, the devaluation of the real has maintained prices of green coffee at pre-crisis levels. As a whole, consumption in these markets is not expected to suffer any major negative impact. The root cause of the coffee crisis can be linked to three factors: over production; under consumption; and market oligop oly. In short, these are all problems associated with the economics of coffee farming. Without resolution, they will lead to both social and environmental breakdowns. (Central America - TheShow MoreRelatedThe Coffee Crisis958 Words   |  4 PagesThe Coffee Crisis MBA 6008-Global Economic Environment Capella University Theresa Patterson December 18, 2011 Coffee was the top source of income for 25 million farmers in Latin America, Africa and Asia. Due to the lack of appropriate compensation for their harvest, communities in coffee- producing countries around the world are suffering. Coffee is a chief export for many developing nations and their entire economiesRead MoreThe Coffee Crisis1045 Words   |  5 Pages12/18/2011 U4A1- The Coffee Crisis Dr. John Halstead In â€Å"The Coffee Crisis†, the authors described that in 2004 the governments of coffee producing countries were considering how to respond to rapid decline to coffee prices. Coffee was the main source of income for about twenty-five million small land farmers in Latin America, Africa, and Asia. In 2001, coffee prices hit a forty year low; resulting in extreme hardship for many farming communities. The affect of this crisis lead to most farmersRead MoreCoffee Crisis1164 Words   |  5 PagesUnit 4 Assignment 1 â€Å"The Coffee Crisis† By Stephen Quinlan amp; Jose Gomez-Ibanez Case Analysis Michael G. Castro Capella University MBA6008 – Global Economic Environment Professor Hadsell February 13, 2013 Introduction Stephen Quinlan and Jose Gomez-Ibanez describes, in â€Å"The Coffee Crisis†, that in 2004 the governments of coffee producing countries were considering how to respond to rapid decline to coffee prices. In 2001, coffee prices hit a forty-year low, which resultedRead MoreEssay on Coffee Crisis3997 Words   |  16 PagesCoffee Crisis The Wall Street Journal, Boston Globe , and the Economist as well as many other media outlets of record were all in consensus when they declared the onset of coffee crisis in October 2001; farmgate prices had sharply dropped reaching a thirty-year low of $0.39 per pound in This price was below the cost of coffee production at the time, listed at USD 0.60 per pound.(Economist 2001) Price declines are not such an uncommon occurrence, but what is more troubling is that the cash marketRead MoreThe International Coffee Crisis Of India1455 Words   |  6 Pagesbecause of imbalanced trade and payment to the commodity that they grow. Their lives depend a great deal on so-called global commodities such as coffee, cacao, and tea, which can be available to citizens in developed countries at a low price. Therefore the demand of these commodities has increased in the last few decades. According to Ambinakudige (2009), coffee that is one of the most traded commodities in the world is the main me ans of small farmers’ lives in developing countries. He examined how peopleRead MoreCoffee and Crisis Management Team21317 Words   |  86 PagesStarbucks Coffee Company Crisis Case - Part I Dr. Phillip G. Clampitt Cases in Media Management August 1, 2009 Crisis Management Team: PuRr-Luscious Ladies Debra Dobson Diane LeVeque Joyce Jentges Karen Sobiesczyk Proposed Crisis Management Plan 2 Table of Contents - Part I Purpose of Crisis Plan†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.......†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦4 Overview of Starbucks. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦......†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..........5 Acknowledgement Forms ...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦............†¦.†¦.......10 Crisis RehearsalRead MoreA Crisis in the World of Coffee Essay530 Words   |  3 PagesCoffee is the second largest export commodity in the world after oil and is exported from 52 countries in the south. The current crisis has evolved through a series of changes in the industry. Since the liberalization of the coffee market, the price volatility has amplified. The world pro duction of coffee has risen dramatically in the past three years mainly due to the production increase in the two world leading countries Brazil and Vietnam. Vietnam has for example increased production by 1400 %Read MoreCoffee Crisis in Kenya Essay2674 Words   |  11 PagesINTRODUCTION For many years, Kenya has been famous for its coffee. Described as strong in body and intense in flavor, Kenyan coffee, which belongs to the Arabica variety, is considered one of the worlds most consistent sources of high-grade caffeine. And because of its good cash returns to local farmers, coffee has traditionally occupied a large share of the countrys most productive lands, grown mostly on rich, red volcanic soil in areas with high and well distributed rainfall. However, the storyRead More Fair Trade Coffee Offers a Solution to the Coffee Crisis Essay1449 Words   |  6 PagesFair Trade Coffee Offers a Solution to the Coffee Crisis When you buy a cup of coffee in Starbucks every morning to keep you awake through the day, do you ever think of the origins of these coffee beans? How much of those three dollars you pay in Starbucks goes to the Farmers? Personally, I’m not a coffee-drinker. But somehow I realize the big sign in front of Java City in the Reitz Union Food Court, which says â€Å"Certified Fair Trade Coffee.† I’m surprised how few students know what it means. CurrentlyRead MoreCase Study : Starbucks And Starbucks Essay1429 Words   |  6 PagesWashington 1971, Starbucks is an American coffee company and coffeehouse chain. It has 23,768 locations worldwide, including 13,107 in the United States, 2,204 in China, 1,418 in Canada, 1,160 in Japan and 872 in South Korea (â€Å"Starbucks†, n.d., para. 1). Starbucks mission is to enrich the human spirit--one person, one cup, and one neighborhood at a time. In 1987, Schultz acquired Starbucks and changed its strategy to build a str ong company and expand high quality coffee business. II The most important factors