Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Market Analysis of a specific commodity - Essay Example

Comments (0) Cite this document
Market Analysis of Coffee Name: Institution: Introduction Holihan (2008) explains that, in economics, the term commodity specifically entails goods. A commodity is a product is a marketable item that is difficult to differentiate from other products of the same type that are from other manufacturers or producers…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
Market Analysis of a specific commodity
Read TextPreview

Extract of sample "Market Analysis of a specific commodity"

Download file to see previous pages The class of commodity goods includes products with high market demand, but that are supplied to the market without qualitative differentiation e.g. from the taste of coffee, 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 study of the brand. However, even though the commodity products are considered equal to one another, they are not exchangeable if they do not meet the market standards. For example, sugar as a commodity product, there is no company 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): and the players in the coffee market. The analysis 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: Coffee Market The product coffee Often, people 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, covers 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 international commodity for trade since 1800s. Coffee is the world’s most widely traded agricultural commodity. Research shows that many, including the world’s renowned historian Mark Pendergrast, have 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 consumption. On one, hand, the market of coffee constitutes net 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 purchase 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 prefer ex-doxy purchase of coffee, small roasters prefer purchase of small lots ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Market Analysis of a specific commodity Essay Example | Topics and Well Written Essays - 2250 words”, n.d.)
Market Analysis of a specific commodity Essay Example | Topics and Well Written Essays - 2250 words. Retrieved from
(Market Analysis of a Specific Commodity Essay Example | Topics and Well Written Essays - 2250 Words)
Market Analysis of a Specific Commodity Essay Example | Topics and Well Written Essays - 2250 Words.
“Market Analysis of a Specific Commodity Essay Example | Topics and Well Written Essays - 2250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Market Analysis of a specific commodity

Commodity: Meat

...? Commodity: Meat Contents I.Introduction 3 II.From being a carnivore to herbivore: what could have started vegetarianism, organic and environmentalism movement. 4 III.Organic food vis-a-vis GMO (Genetically Modified Organism) foods 5 IV.The aggravated condition of meat and the birth of fast food 6 V.The politics of fastfood, lowered costs and risks to health and environment 6 VI.Is organic farming a viable and sustainable as an alternative food to meat? 7 VII.Conclusion 8 Bibliography 9 I. Introduction Food is is the most basic need of all human beings because we have to eat first inorder to live. Early civilzations were even formed based on how the need for food can be addressed. From being nomadic, early societies eventually learned...
9 Pages(2250 words)Essay

Commodity Trade

... felt with the deceleration in China’s industrial production in the middle of the 2008-2009 global economic crisis contributing to a remarkable collapse in the prices of commodities (Feenstra & Wei, 2009, p.1). In the present times, there has been a steep rise in the prices of the different commodities. Considering commodities like the grains, rise in demand has been experienced with the rising incomes in countries like India and China. Several factors associated with the trade policies of the country can be realized to have significant effects on the imports and exports of grains. The production of grains including wheat, flour, rice, and others are largely dependent on the world market that is associated with a country’s imports...
11 Pages(2750 words)Essay


...? Oil With the rapid growth of industrialization all around the world, crude oil can be considered as one of the most important elements in this industrial growth. One can very easily say that it is a very hot topic nowadays. Starting from the very common point of demand and supply of oil in the whole world to the price ups and downs, a lot of interesting scenarios comes out. It goes on with some interesting discussions which create a lot of sense in understanding the global market of oil. Supply of oil in international market The basic oil supplying nations of the world comes within the group called OPEC (Organization of the Petroleum Exporting Countries). The most important oil producing nation in the whole world is Saudi Arabia...
3 Pages(750 words)Essay

Commodity chain

... Commodity Chain I constantly use a mug at least three times a day while taking coffee as my favorite drink. The mug was manufactured in Taiwan by Wei Mon industry co., Ltd (Media Federal, 2011) and is found in plastic and ceramic form, my favorite is the plastic form that I constantly use. The mug is made of only plastic with decorations engraved all around to make it more presentable and attractive. The use of plastic as raw materials could have been settled at due to the widely available forms of plastics in the market today. The raw materials could have been sourced from mainland Taiwan having polyethylene related industries from which the mug was made. The high density polythene is constantly recycled, where other products that have...
2 Pages(500 words)Essay


... Milk Performance in the Market 2007 Milk, together with the dairy product that is produced from it, is a source of food for a large number of people in the world. Milk from numerous animals, especially cows, has for a long time been considered a regular stable food for many cultures worldwide. It provides dairy products such as yogurt, cheese, kefir, and butter, and is a source of vitamin D, proteins, and calcium. However, not many people have wondered how it performs in the markets before it reaches to the consumer. This newsletter will look at its performance in the markets from 2007 to 2012, and will examine its inflation rate, rates of change, as well as its MCSI commodity index (Catlette & Hadden, 261) Since 2007, according to Park...
2 Pages(500 words)Essay

Commodity chains

... A Commodity Chain Analysis of a Pair of Shoes Introduction The twenty first century has been characterized by scintillating shoe trends, which have become a vital element in an individual’s lifestyle. The manufacturing of shoes is not a simple procedure and thus requires the integration of products from many parts of the world. Therefore, the shoes that we wear are from many parts of the globe. Many companies including Nike and Adidas have made riches from the production of shoes, which are sold all over the world. In the contemporary world, the various steps of a commodity chain have been improved by significant changes in the factors of production, industrial linkages and distribution. Production and demand of shoes by consumers...
5 Pages(1250 words)Essay

Commodity Chains

... Chain Analysis of Diamonds from Angola produced by DeBeers Introduction Globalization has led the development of internationaltrade. One such trade involves diamond. De Beers is known across the globe for creating the finest engagement rings and wedding rings made from diamond as well as other elegant diamond jewellery. To that end, the firm deals in mining and trading of diamonds. However, the source of the diamonds has elicited ethical and environmental concerns, especially those sourced from African countries. Diamonds from these nations have been associated with arbitrary detentions, child labor, human rights abuses, and war. In this regard, the paper will discuss Diamonds from Angola produced by DeBeers Discussion An overview...
5 Pages(1250 words)Essay

Starbucks in Chinese Market

In the year 1996, the coffee giant marked its global presence. Up until 2004, the Chinese government prohibited Starbucks to operate its own stores in China. As a result, the coffee giant enters the Chinese market by joint-venturing with Chinese food and beverage companies and licensing other companies to own and operate its stores--differs from its domestic approach. But the company was able to easily overcome its initial obstacles and marked its presence in China very quickly and successfully with great brand recognition and customer satisfaction. The company also tailors its stores to match the local atmosphere. This is a transnational strategy. “For example, the Starbucks strategy in Shanghai is to attract middle to high...
7 Pages(1750 words)Case Study

The Necessity of Job Analysis

... the labour demand. This has raised the competitiveness in the job market which has made employers to change their approach to job analysis. They are tending towards being highly specific in job descriptions in order to acquire the best out of the excess labour pool. More over, companies and organizations are many and producing almost the same products and services. This has made them lay extra emphasis on the diversity of Knowledge, Skills and Abilities (KSAs). This is done in order for them to cope with the prevailing competition in the market. They also need to capitalize on the human resource in order to cover the expenses in terms of salaries and wages. Greater the diversity in Knowledge, Skills and Abilities (KSAs) fits the employee...
7 Pages(1750 words)Coursework

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages(5000 words)Literature review

Analysis of the Methods of 3 Research Papers about Child Abuse

Research ethics was maintained as the identity of the individuals participating was kept secret. As far as the validity of the study was concerned, the researchers attempted to use content validity in order to get an accurate response. The content validity focused on measuring off the ethnicities and gender percentages within the area and attempting to get a random sample of individuals via the phone. Their approach to random calling allowed for a significant random sample in the study. There were a few issues, however, with this type of approach. Those answering the phone sometimes were not always the desired individual, and not all of the desired people were surveyed. Different replacements did have to be used, and the attempt w...
6 Pages(1500 words)Literature review

Comparative Family Analysis

The second component of this essay will be a comparative analysis with the American family to the Arab family, generally speaking, but also clearly described by Homa Hoodfar, in her book Between Marriage and the Market. This essay will discuss the impact of globalization on different types of families in different societies and cultures. The terms ‘traditional’, ‘modern’ and ‘postmodern’ will be defined, elaborated upon and discussed on a continuum of change. Social change, in the face of globalization, will be discussed in relation to how cultures and families have grown or resisted the forces of globalization. We now turn to an exploration of the types of families in the world and follow...
6 Pages(1500 words)Coursework

Economic Analysis of India

The country’s economy is fast growing with a stable political system that encourages foreign investment although with certain restrictions. The country generally has good energy, transport and communication systems which make the cost of doing business affordably.

The Republic of India found South of Asia is by far the world’s most populous democracy and ranks seventh largest in terms of geographical area (Brown, 1994). India is also the second most highly populated country in the world. The country has a rich culture with four major religions having originally emerged from it; Sikhism, Buddhism, Hinduism, and Jainism. The Indian Republic consists of seven union territories and 28 states and ranks twelfth la...
8 Pages(2000 words)Case Study

Airbus A 380: SWOT and Porters Five Forces Analysis

... this does not mean that the pilots are not needed, it is nonetheless an important aspect that the aircraft can go on “auto pilot” whenever desired. This comes in handy when there is rough weather or the landing conditions are inclement. The Airbus A 380 was built using the composite materials for the aircraft. This gives extra strength to the wings and underbelly and mitigates risks of accidents involving these parts. It can be said that building an aircraft is like a piece of art and the thousands of parts that go into the aircraft have to fit in with each other and the margin for error is non-existent as human lives are at stake. SWOT ANALYSIS In this section, I do a SWOT analysis of the Airline Industry with specific focus on Airbus...
6 Pages(1500 words)Case Study

Analysis of Educational Website

.... In other words, availability of information has now become an easy process that used to be a troublesome process in the past. For this purpose, in order to recognize the contribution of internet in the field of education, the paper will specifically identify an educational website, and will carry out its analysis to evaluate the extent of internet in terms of facilitating people from different and diverse backgrounds regardless of their cast, color, and creed. In particular, the researcher chose the Google search engine (2010) to carry out its research for locating an efficient educational website, and within few minutes and with few clicks, it was the official website of “the Smithsonian Center for Education and Museum Studies” (SE, 2010...
7 Pages(1750 words)Article

Analysis of Articles about Climate Change

...Climate change Can we imagine an Earth where there are no green mountains, no deep blue seas and no living creatures? No. But a disaster of such magnitude and dimension is looming over Earth. Humans have identified this threat, defined it and given it a name, global warming. This dangerous proposition is based on the truth that even a 5 % increase in the surface temperature on Earth can wipe out life from this beautiful planet. And the temperature is increasing as never before. It was in 1990s that the world began to hear serious warnings on global warming and climate change. The summary for policy makers prepared as part of the first assessment report by Inter-governmental Panel on Climate Change was the first ever in depth... change Can we ...
6 Pages(1500 words)Literature review

Foreign Market Entry and Diversification

...Foreign Market Entry and Diversification Table of Contents Identification and discussion of the trendsin the global beer markets 3 International expansion trends and Modelo’s internal expansion 5 The next foreign market Modelo should enter 6 Challenges from InBev 7 Modelo should diversify 8 References 10 Identification and discussion of the trends in the global beer markets Beer industry is one of the largest industries in the world. Over the last few years the entire alcohol industry enjoyed a satisfactory performance. In 14th century modern beer industry started in Europe. Since the tastes of consumers vary from region to region, the industry was clustered in nature and it was dominated by several local breweries. Earlier transportation...
7 Pages(1750 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Market Analysis of a specific commodity for FREE!

Contact Us