World Bank Group | Agriculture & Rural Development | Executive Summary - Coffee Markets: New Paradigms in Global Supply and Demand

World Bank Group | Agriculture & Rural Development | Executive Summary - Coffee Markets: New Paradigms in Global Supply and Demand ()

  „It seems that in this region the differentiated product market is growing the fastest.The differentiated product market requires that producers distinguish their products by distinct origin, defined processes, or exceptional characteristics, such as superior taste or few defects. These can be traded through more lucrative channels than the typical industrial grades that flow in the undifferentiated commodity channels and include:Geographic Indications of Origin (appellations)Gourmet and specialtyOrganicFair tradeEco-friendly or shade grownOther certified coffeesWhile these differentiated segments can provide some producers with competitive advantages and added value, they are not necessarily easy to access and are still relatively small. Nevertheless, they are important because of their growth rates and their potential to provide better social, economic, or environmental benefits for farmers. Though much of the coffee industry feels that premiums paid to growers for differentiated coffees are reasonable, it may be prudent to de-emphasize price premiums as a reason for entering these markets because it is quite plausible, at least in some cases, that these premiums will diminish.“

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