Essay on Macroeconomic Factors Affecting Coffee Trade

2193 Words Nov 15th, 2015 9 Pages
MBA
CORE

MICROECONOMICS PROJECT
AN ANALYSIS OF THE COFFEE MARKET
ASHWIN MURALI (I001) | ANIRUDHHA BHATOTIA (I006) | APALA RATH (I063)

CONTENTS
Sr. No.

Topic

Page No.

1.

Research Question

2

2.

Introduction

2

3.

Industry characteristics in India

3

4.

The economics of the coffee market

4

5.

Findings

6

6.

Conclusion

7

7.

Suggestions

7

8.

References

8

1

Research Question
How does weather drive microeconomic forces to affect the prices of coffee?

Introduction
Coffee is a brewed drink prepared from roasted coffee beans, which are the seeds of "berries" from the
Coffea plant. Coffee is a popular beverage and an important commodity. Tens of
…show more content…
It earns a lot of foreign exchange in many developing countries and some countries still rely on coffee for up to 80% of their export revenues. Trade patterns have evolved over time traditionally benefiting big exporters like Brazil, Columbia and now Vietnam. From 1957 to 1989 the coffee market was regulated by the ICA, which regrouped both exporting and importing countries.
Second only to oil, coffee is the world’s second most traded commodity. As the global third most consumed beverage, after water and tea, coffee beans are in high demand everywhere. The top producing nations each produce millions of kilograms of coffee beans that find their way into the hands of eager consumers. The top 10 producers of coffee beans in 2014 were:
1. Brazil – 2,720,520,000 kg
2. Vietnam – 1,650,000,000 kg
3. Colombia – 750,000,000 kg
4. Indonesia – 540,000,000 kg
5. Ethiopia – 397,500,000
6. India – 344,750,000 kg
7. Honduras – 279,000,000 kg
8. Mexico – 240,000,000 kg
9. Uganda – 240,000,000 kg
10. Guatemala – 210,000 kg
The two most common types of coffee beans used in making coffee are the Arabica bean and the
Robusta bean. These two beans are used more than any other variety of beans, either in their pure form or in coffee blends.

2

Industry characteristics in India


Seasonal nature of the

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