The World Coffee Market in 2011-2012:
UNIVERSITY OF HOUSTON – VICTORIA SCHOOL OF BUSINESS ADMINISTRATION
ECON 6351 ECONOMICS FOR MANAGERS
CASE STUDY THE WORLD COFFEE MARKET IN 2011-2012: WHAT FORCES DRIVE WORLD COFFEE PRICES?
INSTRUCTOR: Dr. Vera Adamchik STUDENT: Olumide Joseph Ajayi
I, Olumide Joseph Ajayi, hereby certify and warrant: (a) that this Individual Case Study is my original work; (b) that I have acknowledged all the sources used in this Case Study. I understand that copying of another’s work and representing it as my own work is a serious academic offense, and should be treated as such.
April, 2013 month, year
TECHNICAL SUMMARY MAJOR FACTORS AFFECTING THE WORLD SUPPLY OF COFFEE AND THE WORLD DEMAND FOR COFFEE IN 2011-2012 Factor/event Consider only one event at a time. Assume all other factors are unchanged 1. Increase in global consumption 2. Inclement weather 3. Natural disaster 4. Global acceptability 5. Not competitive Impact on the world supply of coffee The world supply of coffee Increased The world supply of coffee decreased Decrease in supply of coffee Increase in supply Increase in supply Impact on the world demand for coffee Demand increased No impact No impact Increase in demand Increase in demand
Section 1: The world coffee market in 2011-2012: structure and composition What countries are the largest coffee producers and exporters? Brazil is the biggest world producer of coffee. Brazil produces about 15% of the coffee global market. Most imported coffee to US is from Brazil. Brazil exports are known as Brazilian Naturals which is an unwashed Arabica. Brazil is followed by Vietnam which produces the cheapest coffee bean for importers. The third largest producer of coffee between 2011 and 2012 is Indonesia and followed by Ethiopia and Colombia. Table 1.1 below shows the 13th World largest coffee producing countries. While Figure 1.1 shows the graph. Of the countries India and Costa Rica had steady increase of 5 years, Ethiopia equally had steady increase
ECON 6351 ECONOMICS FOR MANAGERS
CASE STUDY THE WORLD COFFEE MARKET IN 2011-2012: WHAT FORCES DRIVE WORLD COFFEE PRICES?
INSTRUCTOR: Dr. Vera Adamchik STUDENT: Olumide Joseph Ajayi
I, Olumide Joseph Ajayi, hereby certify and warrant: (a) that this Individual Case Study is my original work; (b) that I have acknowledged all the sources used in this Case Study. I understand that copying of another’s work and representing it as my own work is a serious academic offense, and should be treated as such.
April, 2013 month, year
TECHNICAL SUMMARY MAJOR FACTORS AFFECTING THE WORLD SUPPLY OF COFFEE AND THE WORLD DEMAND FOR COFFEE IN 2011-2012 Factor/event Consider only one event at a time. Assume all other factors are unchanged 1. Increase in global consumption 2. Inclement weather 3. Natural disaster 4. Global acceptability 5. Not competitive Impact on the world supply of coffee The world supply of coffee Increased The world supply of coffee decreased Decrease in supply of coffee Increase in supply Increase in supply Impact on the world demand for coffee Demand increased No impact No impact Increase in demand Increase in demand
Section 1: The world coffee market in 2011-2012: structure and composition What countries are the largest coffee producers and exporters? Brazil is the biggest world producer of coffee. Brazil produces about 15% of the coffee global market. Most imported coffee to US is from Brazil. Brazil exports are known as Brazilian Naturals which is an unwashed Arabica. Brazil is followed by Vietnam which produces the cheapest coffee bean for importers. The third largest producer of coffee between 2011 and 2012 is Indonesia and followed by Ethiopia and Colombia. Table 1.1 below shows the 13th World largest coffee producing countries. While Figure 1.1 shows the graph. Of the countries India and Costa Rica had steady increase of 5 years, Ethiopia equally had steady increase