| |
| |
|
Coffee Information |
|
|
|
Coffee Commodities and Starbucks
If we look at commodity trading from a purely conceptual standpoint, we find that the true reason for having a commodity exchange in the first place, was to stabilize pricing so that the American farmer could have a better idea of what his agricultural product would sell for once the harvest was complete. It also helped manufactures who needed raw materials to know how much money could be charged in their end product, by knowing their costs. If we look at the Colombian coffee market we see some interesting things develop. Starbucks has bought up half of the plantations there. While Starbucks was buying coffee previously, those plantation owners made lots of money, now Starbucks owns the plantations and therefore is running them differently. And not buying coffee from the other plantations, therefore the coffee prices have been lowered throughout the country, causing a Terrible plight on the people. Yet, if those plantation owners been sold their properties to Starbucks, had never sold them in a first place, then they would still be making lots of money from Starbucks. Starbucks job is to return shareholder value to its owners and that means operating very efficiently, that means pain as little as possible to wholesale coffee growers. It was able to do this by buying out the plantations and doing it themselves. Of course there is a different culture in Columbia and a large coffee plantations also cared for the workers. That is not the way a modern-day American corporation works. The plantation owners are very upset, those in still remain owners, who have not sold out because there is nowhere to sell their coffee, for the high price they previously sold to Starbucks. However one must also consider, that before Starbucks the coffee plantations made just average profits. When Starbucks came along, their profits when up temporarily, until five years later Starbucks bought their own plantations, and not just in Columbia, all over the world. Someday, coffee means will be less of a commodity then they are today, because Starbucks will own over 50 percent of all the coffee plantations. Coffee plantations do not produce a lot of harvest until their many years old. Starbucks is controlling that commodity by owning 23 percent of the commodity. Whenever they don't use, they sell for a higher price than the original coffee plantations were selling for. Some might complain about this strategy, however if they are using mostly coffee are retail level and selling the rest then they are free to do that. The only real problem with this, is bad messes with the entire supply chain, in this case it heard the people, the hard-working people of Columbia. Think about the macro and micro economics of coffee commodities next time you sip on your Starbucks Coffee. "Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
MORE RESOURCES:
Coffee - Google News |
|
|
|
RELATED ARTICLES
What is Sustainable Coffee and How Does it Affect My Wake Cup? Gourmet coffee lovers have been seeing a few new terms in the local premium coffee shop as they file past the seasonal retail displays of roasted whole bean bagged coffees. Phrases include eco-friendly, organic, shade grown, fair trade and certified sustainable. A Coffee Roaster For All Occasions Coffee roasters and those who roast, brew and serve the ultimate cup of coffee are now esteemed professionals within the social fabric of our community at large. A good coffee roaster is a little like a celebrity chef these days, complete with loyal followings, highly descriptive reviews and the ability to command premium prices for their products and services. Coffee Club Membership Is A Joy For Coffee Lovers Coffee club membership is a joy for coffee lovers The coffee club concept is relatively new but is taking the world by storm. Reward yourself or your friends and relatives with coffee clubs by joining up and saving loads. History of Instant Coffee Mention instant coffee to any connoisseur and you are sure to get a frown of disgust. Yet, who among us hasn't, after finding the coffee tin empty, scoured the cupboard in desperation with hopes of finding a long since misplaced jar or 'hotel packet' of instant coffee? And, after sighing in relief, relished in amazement that it is still good after all those years of obscurity, abandonment and outright neglect on the dusty top shelf at the back of the pantry. Coffee Drink Basics When you enter a coffee house, you have a multitude of drink choices like latté, cappuccino, straight shot and caffé mocha just to name a few.Sometimes knowing what to order can be overwhelming unless you know what you are getting. Live the Life of a Civil War Soldier When you Drink your Mornin Coffee Civil War soldiers, Confederate and Union, used to make their coffee in pots. But on the march, they just usedtheir boilers. Coffee Grinders Jumpstart Your Java All the experts agree. People who want the best flavor in their coffee use coffee grinders. Russian Tea drinking - The beginning It is believed history of Russian tea drinking tradition have began at 1638.That year, Russian Czar, Michael Fedorovich, granddad of Peter the Great, got special, diplomatic gift from Altyun-Khan, ruler of Mongolia. Coffees of India India produces two fine coffees, but even among coffee devotees - at least in America - they remain relatively unknown and un-drunk. That's too bad. Gourmet Coffee Habit Costing Consumers as Much as $1,500 Yearly Gourmet coffee consumers rarely consider the cost of their daily coffee in terms of the expense to brew premium whole bean coffee at home (50 cents to 75 cents) with prices of a pound of gourmet coffee beans versus a two or three cup a day ($4.50 to $6. Those Elusive Coffee Beans! With the spread of various coffee beans into our lives, it can be more and more difficult to discern what you're buying at the market. And that's not surprising given the sheer numbers game. 11 Effects of Caffeine on The Body Caffeine is big business. There are new coffee shops popping up all over the place. Caffeine & Low Birth Weight Babies These studies begin to point the way to the more permanent damage that coffee drinking can inflict on the unborn. The use of caffeine during pregnancy has been widely studied. Coffee, Caffeine & Fitness One look at a line at the local Starbucks in the morning and you don't need to be convinced of the huge amount of coffee consumption in the U.S. Italian Coffee - Something For Everyone Espresso, caffè latte, cappuccino; there would seem to be as many types of Italian coffee as there are pastas. And just like pasta, Italian coffees are an art form accompanied by hundreds of customs and traditions. A Little Secret Your Dentist Doesnt Want You To Know Most dentist, particular those who specialize in cosmetic dentistry love it when you drink coffee & tea. Why? Your making them wealthy! Because all coffees and teas contain tannic acid. Gourmet Coffee Beans You can be a coffee lover without knowing much about coffee beans, but learning a little bit about the different types of coffee can help you get the perfect cup every time. There are many types of gourmet coffee beans. Are Coffee Enemas The Real Thing? Coffee enemas detoxify the liver, as well as cleans the colon. Some people claim that they provide immediate relief to toxicity symptoms, such as congestion, indigestion, pain and headaches. Specialty Gourmet Coffee Specialty gourmet coffee is a very hot commodity in today's market. The consumption of gourmet coffee has steadily grown with consumers enjoying the more sophisticated tastes of gourmet coffee beans. How Is Kona Coffee Different? Like much of Hawaii, Kona offers ideal climate conditions for growing coffee. But there is something different about the Kona coffee cherries produced here that has earned this coffee a worldwide reputation for excellence.
|
| home | site map |
| © 2006 |
