CE02-02-4.0

Why cheap green coffee doesn’t make cheap cappuccino?

Abstract

After oil, coffee is arguably the second most important commodity as it constitutes an important source of foreign income for several some developing countries. Coffee, like any other agricultural products, is a cyclical crop. When the supply of coffee is large, the world price of coffee falls. Many farmers then go out of business, or they switch from coffee to other similar crops. Consequently, the world supply of coffee falls, and so prices rise again. Once again, it becomes financially worthwhile for farmers to produce coffee instead of those other crops...

Pages:
3
Type:
Case
Date Published:
Jan 21, 2002
Language:
English

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