Market Analysis of a specific commodity Essay Example | Topics and Well Written Essays - 2250 words

Market digest of a specific good - Essay ExampleThe class of goodness goods includes products with high market demand, solely that be supplied to the market without qualitative several(predicate)iation e.g. from the taste of deep brown, one cannot easily differentiate that it is from Brazil or Ethiopian highlands or if the coffee is a product of Nestle or Sara Lee companies without careful acquire of the brand. However, even though the good products are considered equal to one an some other, they are not exchangeable if they do not meet the market standards. For example, sugar as a commodity product, there is no connection that has a higher chance of controlling its market supply or price level than other companies since to a consumer it is difficult to differentiate the taste of sugar (Holihan 2008). Based on the economic perspectives and arguments of commodity markets and commodity products, this research paper aims to analyze the market of coffee (as a commodity product) an d the players in the coffee market. The analytic thinking will encompass description of the coffee market structure, companies or players involved, market share, market size, major players, coffee demand and supply, competition and market dominance. Commodity market cocoa Market The product coffee Often, batch depict coffee as a homogenous product. However, this is not right because there are different types and forms of coffee in the market. According to ICO (2002), the two main types of coffee are Robusta and Arabic Arabica is the largest, c everywheres almost over 70% of the worldwide coffee trade, and exports while Robusta constitutes the remaining percentage of lower than 30% of the world market. ICO (1995) listed 70 coffee producing countries worldwide with Brazil and Colombia leading in coffee production. The Coffee Market Coverage In reference to Fridell (2007), coffee is not just a drink to enjoy it is a global commodity and influences world economy. The commodity coffee has a global market and occupies a higher position in the world commodity markets. Fridell (2007) explains that the product has been an important internationalistic commodity for trade since 1800s. Coffee is the worlds most widely traded agricultural commodity. Research shows that many, including the worlds renowned historian Mark Pendergrast, give birth describe coffee as the second most legally traded world commodity after oil. Coffee has cemented its position in most world stock and securities exchange as an essential exchange commodity (Kirsten 2009). As a global product, Fridell (2007) notes that coffee follows a long market chain before its final exam consumption. On one, hand, the market of coffee constitutes wampum producers and net consumers while, on the other hand there are net exporters and net importers in the world. Research shows that most producer countries are net exporters and not net consumers (Kirsten 2009). In addition, large multinational corporations that roast and retail the coffee to final consumers dominate the coffee market. Holihan (2008) says that the international trade has essential significance in global marketing and distribution of coffee. In the global market, international dealers, traders or international trade houses get coffee from the exporting countries. Roasters in Europe tend to purchase their coffee from international trade houses or specialized import agents with contracts of exporters in producing countries. While large roasters-corporations elect ex-doxy purchase of coffee, small roasters prefer purchase of small lots