Subject category:
Economics, Politics and Business Environment
Published by:
International Institute for Management Development (IMD)
Version: 08.03.2004
Length: 12 pages
Data source: Field research
Abstract
This is the third case of a three-case series (IMD-2-0103 to IMD-2-0105). The growth of fairly traded coffee combined with Max Havelaar coffee seems to max out at about 3% of total coffee consumption. In addition, supply starts to far outweigh demand. As a consequence cost fall to about one fourth of what they were in 1990, while at the same time revenues double. This creates a global coffee crisis on the supply side. The case asks what this means for the coffee farmers, non-governmental organisations, governments around the world, and for the major coffee brand owners such as NestlÚ, Procter and Gamble, and Sara-Lee. And why they should care.
About
Abstract
This is the third case of a three-case series (IMD-2-0103 to IMD-2-0105). The growth of fairly traded coffee combined with Max Havelaar coffee seems to max out at about 3% of total coffee consumption. In addition, supply starts to far outweigh demand. As a consequence cost fall to about one fourth of what they were in 1990, while at the same time revenues double. This creates a global coffee crisis on the supply side. The case asks what this means for the coffee farmers, non-governmental organisations, governments around the world, and for the major coffee brand owners such as NestlÚ, Procter and Gamble, and Sara-Lee. And why they should care.