Essay about Coffee Producers Cartel

Essay about Coffee Producers Cartel

Length: 621 words (1.8 double-spaced pages)

Rating: Good Essays

Open Document

Essay Preview

Coffee Producers Cartel

A cartel explained by economists is a method of controlling the supply
and demand effect and restricting prices from continual decrease. A
cartel is an unlawful association or group of manufacturers or
suppliers who get together to maintain high prices and restrict
competition. In its simplest terms, a cartel is an agreement between
businesses not to compete with each other. The agreement is usually
verbal and often informal. Typically, cartel members may agree on:

· prices

· output levels

· discounts

· credit terms

· which customers they will supply

· which areas they will supply

Cartels are most successful in areas where there is little
competition, the product has no commodities, communication channels
between competitors are already established and the industry is
suffering from excess capacity or there is general recession. Although
they can be helpful if you are a member of a cartel, you could be
fined up to 10 per cent of your UK turnover for up to three years.
Most producers are better off agreeing to a tacit agreement where by
there is an agreement between firms on an informal basis where nothing
is recorded officially.

Coffee is currently the second largest commodity market in the world
behind oil. The market expands across the entire globe and its effects
reach the developed and developing countries alike. Most cocoa beans
are grown in the developing countries and have been done so for the
past century but in recent times the cost of cocoa has rapidly
decreased. As the price of the cocoa beans decrease it has caused
large-scale problems in the market and over...

... middle of paper ...

...ers will have no choice to agree and thus
cause problems on a price basis for consumers.

The effect of a cartel from the coffee producers on consumers may also
mean that the quality of cocoa from the countries that produce high
quality cocoa will decrease. This is because as the retailers give in
to the demands of the coffee producers it will mean that the countries
that develop high quality cocoa will see the fact that retailers will
have no choice apart from buying there cocoa. Thus the producers will
start to decrease their work effort, as they will notice that whatever
happens they will get a continual amount of profit. As work effort
decrease it will mean that the producers will care less about the
cocoa and thus the quality of the beans will decrease and thus
directly effect the interest of the consumers.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Coffee And Its Effect On Coffee

- Picture this, the alarm goes off at 5 am, you have to get up for work or school but you are mentally and physically exhausted from not getting enough sleep. What could start your morning better than the smell and taste of a large cup of coffee. Come time of the age 18, the reliance on coffee is significantly high in getting through the day. Does the majority of society actually take the time to sit down and think exactly what they are drinking. Is this beverage that we consume actually as good as we make it out to be....   [tags: Coffee, Caffeine, Coffea, Tea]

Good Essays
700 words (2 pages)

Essay about Costa Coffee 's A Coffee

- Costa Coffee , is a company that is founded in 1995 by an italian brothers (Sergio Costa & Bruno Costa) in England. They first started as a Coffee Bean wholesale business , catering to the needs of local cafes and coffee houses. With their Italian background and experience in mixed roasted coffee beans that Sergio learnt in Parma, Italy, The Costa brothers gradually established their own unique style of roasting coffee beans. They go through a low temperature , slowly roasting the coffee beans, so that the final product has a fragrant and bitter less taste....   [tags: Coffee, Coffeehouse, Starbucks, Coffee roasting]

Good Essays
2554 words (7.3 pages)

A Crisis in the World of Coffee Essay examples

- ... The principal coffee producing countries in this region are listed below. Brazil By volume, Brazil is one of the world's leading producers and exporters of coffee. Fazenda Vista Allegre is a truly unique coffee with a sweet full-bodied character. It is produced using a slightly different picking method resulting in a complex, interesting coffee. Fazenda is exclusive to Second Cup in Canada. Colombia Colombia is another leading producer of coffee. Colombia produces some excellent coffee such as San Agustín, a superb estate coffee popular for its balance and remarkably rich aroma....   [tags: export, beans, producers]

Free Essays
532 words (1.5 pages)

Essay on The Mexican Drug Cartel

- The Mexican drug cartel is made up of many different cartels, but the main one is the Sinaloa cartel. The Sinaloa cartel is one of the most dangerous cartels in mexico, it is also the most optimistic cartel in mexico, they will go to high extents into their projects. The leader of the Sinaloa cartel is Joaquin “El Chapo” Guzman, he is believed to be one of the most powerful drug lords in the whole world. There aren’t many organizations trying to stop the cartels besides the DEA which stands for Drug Enforcement Administration....   [tags: sinaloa cartel, chapo guzman]

Good Essays
678 words (1.9 pages)

The Coffee Of Coffee And Coffee Essay

- Some of the best beverages in the world are made using the humble coffee bean. I know that coffee, in all it 's guises, surely makes my life better. But understanding the difference between espresso and coffee or the difference between coffee and cappuccino can feel tricky at first. I know the first time I walked into a coffee shop by myself I was a little overwhelmed. I didn 't know the difference between latte and cappuccino, let alone the difference between mocha and latte. I was able to learn, eventually....   [tags: Coffee, Espresso, Milk, Caffeine]

Good Essays
1512 words (4.3 pages)

What Makes A Coffee Grounds? Essay

- Uses for coffee grounds, other than making your morning coffee are many. They may also be a pick-me-up for your plants and landscape. Coffee and tea grounds can be used in and around the garden. They act as a slow release fertilizer or can be a main component of your compost. Sprinkling dry coffee grounds thinly in the soil will add nutrients back into the ground. Incorporate one or more of these suggestions and let your coffee grounds go green. 1. Add both coffee grounds and tea bags to compost piles - filters and all - to make an all-natural, rich source of energy for plants....   [tags: Coffee, Espresso, Coffee roasting]

Good Essays
1430 words (4.1 pages)

Starbucks : A Good Cup Of Coffee Essay

- Starbucks is one of the top coffee retailers in the country. It is important for us to know how to break down and manipulate ads around us, like this Starbucks ad. This advertisement was first published around 2009 it was part of an ad campaign. Some other ads put out on this campaign was “Beware of cheaper coffee”, also implying that a good cup of coffee comes with a price. If we do not learn to break ads down, the ads will start to manipulate us into buying the product. It is important for us to learn this so we can actually control ourselves and things we buy....   [tags: Coffee, Starbucks, Seattle's Best Coffee]

Good Essays
746 words (2.1 pages)

Essay about How The Sinaloa Cartel Has Had On My Hometown

- Maria Lara COMM 150 I. Introduction A. Attention Getter: A man 's face was found stitched on to a soccer ball, his body was found cut into 7 separate pieces in different locations with a single note that read "Happy new year because this will be your last". Headlines liked these are becoming much more common in Mexico, but who 's responsible for gruesome deaths like these. A drug war heavily lead by the Sinaloa Cartel. B. Background: The Sinaloa Cartel has become one of the most predominate suppliers of illegal narcotics in the entire world....   [tags: Mexican Drug War, Drug cartel, Sinaloa Cartel]

Good Essays
1454 words (4.2 pages)

Coffee and Power Essay

- There is a lot of literature that attributes the failure of coffee farms in Central America to the lack of fair-trade law, effective protection from international organizations, the abuses of colonial powers and their repercussions, and the impact of globalization. Based on the finding of the presented research there is a significant connection between the failure of coffee farms and the lasting impact of abusive colonial powers, or Dutch disease. There are definitely issues of fair-trade, globalization, and international organizations but they are not as impactful....   [tags: Globalization, Fair-trade, Coffee Crisis]

Good Essays
1727 words (4.9 pages)

Cali Cartel vs. Tijuana Cartel Essays

- The drug trade is a very large and complex system. There are many different organizations involved at different levels. There are groups that operate only in growing and selling the product, and only groups that buy and distribute the drugs. In this essay I will discuss the similarities and differences of two of the largest growers and sellers in the drug trade: The Cali Cartel of Columbia and the Tijuana Cartel of Mexico. The Cali Cartel is the largest, richest, and most complex producers and distributors of cocaine....   [tags: essays research papers]

Good Essays
959 words (2.7 pages)