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COMMODITY SUPPLY MANAGEMENT BY PRODUCING COUNTRIESA Case-Study of the Tropical Beverage Crops$
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Alfred Maizels, Robert Bacon, and George Mavrotas

Print publication date: 1997

Print ISBN-13: 9780198233381

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198233381.001.0001

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Problems of the World Markets for Tropical Beverages

Problems of the World Markets for Tropical Beverages

Chapter:
(p.21) 2 Problems of the World Markets for Tropical Beverages
Source:
COMMODITY SUPPLY MANAGEMENT BY PRODUCING COUNTRIES
Author(s):

Alfred Maizels

Robert Bacon

George Mavrotas

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198233381.003.0003

International economic policy is important in the world markets for tropical beverage crops. Since most of the producing countries are underdeveloped, changes experienced in market conditions that influence tropical beverage prices and earnings from export can significantly affect employment, incomes, and living standards in several developing countries. In particularly, Sub-Saharan Africa can be subject to adverse trends in the prices of tropical beverages as these countries heavily rely on exports of tropical beverage crops. Aside from the fact that the tropical beverage market proves to be unstable because of short-term price cycles and unstable export revenues, the world demand for beverage crops is price-inelastic. This chapter is mainly concerned with the short-term difficulties experienced by developing countries as a result of their dependence on foreign exchange from tropical beverage crops.

Keywords:   price-inelastic demand, tropical beverage crops, foreign exchange, market conditions, prices, short-term price cycles, export revenues

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