Possibilities for consumer government actions to support coffee producers
This is the final report of a study commissioned by the Belgian Secretary of State for Development Co-operation, with the purpose of outlining possible actions to be adopted by the European Union to ensure a better share of total coffee revenues to producers in developing countries. The way to improve the participation of coffee producers in the economic gains accrued in the world coffee market translates, ultimately, in their receiving a fair price for the commodity they supply. A fair price is not an abstract entity in itself, but - in the competitive world economy - is perhaps better defined as a market price that results from fair market conditions in the whole coffee producing chain. Because of this, as will be seen below, for improving the lot of coffee producers, this reports outlines proposals to take place in the consuming countries, particularly Europe. At first sight, it might seem a contradiction acting in one region to directly impact others, far away. The key to the logic of the argument lies in the definition in the previous paragraph. As we try to demonstrate, market conditions in the consuming-countries side of the coffee producing chain are not fair; the market failures and distortions ingenuously created there are responsible for the enormous asymmetry of gains in the two sides. Radical positive measures for the coffee farms must begin, ironically, in Brussels. The structure of this report is as follows. Section 2 introduces preliminary background considerations. A summary of the past and present experiences in the application of supply management schemes is the content of Section 3 . Section 4 is an introduction to the main issues in the analysis of the coffee market . Finally, section 5 presents the proposals for consumer government supporting actions, and suggestions for a series of detailed studies to support the actions.
|Date of creation:||2002|
|Contact details of provider:|| Postal: Prinsstraat 13, B-2000 Antwerp|
Phone: +32-(0)3-265 5770
Fax: +32-(0)3-265 5771
Web page: http://www.uantwerpen.be/iob
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Morisset, Jacques, 1998. "Unfair Trade? The Increasing Gap between World and Domestic Prices in Commodity Markets during the Past 25 Years," World Bank Economic Review, World Bank Group, vol. 12(3), pages 503-26, September.
When requesting a correction, please mention this item's handle: RePEc:iob:dpaper:2002004. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hans De Backer)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.