The World Coffee Market
Compared with cocoa and other similar commodities, coffee is fundamentally used as a beverage. Although coffee may go through several different manufacturing processes to end up as a soluble product, it is not usually combined with other inputs to produce the final product. In the case of coffee, the price of the final product is indeed linked with the price of the raw material and with various costs associated with the manufacturing and distribution of coffee. Coffee has several different available qualities. The two main varieties — arabica and robusta — have many other subvarieties. As such, price differentials depend on tastes in consuming countries. Because of the lack of complete information regarding prices and quantities in different markets, little systematic study about demands for coffee variety have been included in complete models of the world coffee market.
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