Macroeconomic Factors Affecting Coffee Trade

In: Other Topics

Submitted By Ashwin1690
Words 2189
Pages 9
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 millions of small producers in developing countries make their living growing coffee. Over 2.25 billion cups of coffee are consumed in the world every day. Over 90% of coffee production takes place in developing countries, while consumption happens mainly in the industrialized economies.
Coffee has its origins in the Horn of Africa, in the Ethiopian province of Kaffa, where in all probability the first coffee tree appeared. It’s been attested that coffee beans used to be chewed by African slaves brought to Arab countries and coffee has been cultivated in Yemen since the 15th century.
Coffee was brought to Europe by Venetian traders in 1615, when hot chocolate and tea had already become fashionable. Europeans then started to cultivate coffee in their freshly acquired colonies. The
Dutch started to grow coffee in India and in Java at the end of the 17th century. Eventually it spread to the
Caribbean islands and to Surinam from where it reached South and Central America. In 1825 coffee culture started in Hawaii. In two centuries, coffee had spread around the whole world.
Coffee trade has grown since then to become the second or…...

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