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An Analysis of Seasonal Demand for Coffee Beans

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  • Joo, Joonhyung

Abstract

This study analyzes the demand for coffee green beans from the top five countries based on the amount of domestic imports using the Linear Approximated Almost Ideal Demand System (LA/AIDS). According to the analysis, own/cross-price elasticities of coffee green beans turn out to be below 1. Thus, coffee green beans in Korea are analyzed as goods whose consumption (import) does not change significantly due to price changes. The results of own-price elasticity indicate Vietnam, Brazil and Ethiopian coffee green beans are consumed in summer when iced coffee is mostly consumed. On the other hand, Colombian, Guatemalan coffee green beans are consumed in the market in winter when hot coffee is mainly consumed. Next, as a result of analyzing preferences using expenditure elasticity, coffee green beans from Ethiopia and Guatemala are preferred in summer and coffee green beans from Vietnam, Brazil, and Colombia are preferred in winter. It is analyzed that there is no clear correlation between the harvest season and the preference for coffee green beans at the time.

Suggested Citation

  • Joo, Joonhyung, 2020. "An Analysis of Seasonal Demand for Coffee Beans," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 43(3), September.
    • Handle: RePEc:ags:jordng:330786
    DOI: 10.22004/ag.econ.330786
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    Keywords

    Demand and Price Analysis;

    Statistics

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