Coffee markets: new paradigms in global supply and demand
2004
B. Lewin | D. Giovannucci | P. Varangis
This report examines the changing environment for coffee producers and argues that in the current situation of liberalised markets and decreasing state support for agriculture, it will be increasingly incumbent upon producer and trade organisations to provide the necessary services for themselves.The paper examines a growing response to the coffee crisis; the development of "differentiated" coffee markets, including Fair Trade, organic, and premium coffees (among others). It finds that while these can provide some producers with competitive advantages and added value, they are not necessarily easy to access and are still relatively small. Nevertheless, the report argues that they are important because of their growth rates and their potential to provide better social, economic, or environmental benefits for farmers.Solutions to the crisis may include:coffee producers must maintain quality and consistency of product to benefit from product differentiationcoffee producers need to understand the characteristics and nature of the changing coffee marketgovernments should create favourable business environments that foster research, extension, risk management, diversification and marketing programmesgovernments need to focus on rural development that will increase competitiveness and reduce dependency on a few primary commodities by broadening the range of products produced by the agriculture sector, improving production and marketing systems, and supporting the creating of non-farm activities.[adapted from author]
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