GEOG 130 Lecture Notes - International Coffee Agreement, Rainforest Alliance, Futures Exchange
Document Summary
Wake up and smell the coffee (black gold) Ethiopia is the largest producer of coffee beans. Ica regulation collapsed when brazil refused to renew w/ changing consume tastes, bring price to all-time low. Let free market work itself instead of regulating prices . For 1 kilo, they get $. 23 instead of (market price) System of individual cooperatives selling to middleman buyers roasters sellers. Cooperatives break at least 3 of the chains. Subsidies for rich countries = poor countries cannot grow crops & get a good. Price established in market (far away from where producers are) by businesses that buy price for them the raw materials. Wto sets up rules for global trade. Trade more important than aid - cannot rely on it forever. It was well-balanced and did show both sides of the commodity chain: from producer to consumer: the price of coffee is established on the market, away from the producers and by the companies.
