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Coffee Supply and Demand. ... When it comes to the supply, demand and price of coffee
there are certain factors that can fluctuate these characters to rise or fall. ...
... Starbucks sees premium coffee supply meeting demand Mon Sep 18, 2006 12:28 PM ET
NEW YORK (Reuters) - The chairman of specialty coffee chain Starbucks Corp. ...
... (Schlesinger, 2005) The article went further to say, “with coffee demand growing
and supply down, it comes as no surprise that market pricing is up ...
... The coffee market is extremely volatile and any imbalances in supply and demand
will cause serious price fluctuations, which will mostly affect the producers. ...
... Recently world coffee supply has been exceeding demand, which has taken even more
power away from the suppliers who must compete with growers from around the ...
Submitted by cows13 on September 23, 2007
Category: Business
Words: 927 | Pages: 4
Views: 275
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Coffee Supply and Demand
Besides the high demand and cost for gasoline these days, coffee is considered the second most traded commodity on worldwide markets next to oil. “Coffee is grown in more than 50 countries in a band around the equator and provides a living for more than 20 million farmers. Altogether, up to 100 million people worldwide are involved in the growing, processing, trading and retailing of the product” (Spilling the Beans…, ). In 2001, coffee farmers and plantations produced over 15 billion pounds of coffee while the world market only bought 13 billion pounds. The overproduction in the coffee industry is not a usual thing and is one of the major reasons why prices vary throughout the industry.
One of the major corporations today that is trying to control a large portion of the supply of coffee is Starbuck. Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world. Starbucks purchases, roasts, and sells whole bean and rich-brewed coffees, espresso beverages, cold blended beverages, an assortment of food items, coffee-related
accessories and equipment, a selection of quality teas and a line of compact discs. Starbucks has over 8,700 retail locations in North America, Latin America, Europe, the Middle East, the Pacific Rim and is continuing to grow. When coffee is considered Starbucks has developed a worldwide name for itself and has become a huge success.
An article in the Seattle Post, describes the alliance that Starbucks is making to ensure that a sustainable supply of high quality of coffee is produce in Latin America. “Starbucks President and CEO Orin Smith said the alliance is partly his company\\\'s effort to pass on the \\\"high price\\\" of a cup of coffee to farmers.” (Lee, 2004). He states that the high price enables them to pay the highest price to the farmers. Though the high prices to suppliers can demonstrate that money get to farmers with being diverted....
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