Supply chain of coffee
At this processing and packaging is done. It includes cleaning and weighing, grinding, roasting, blending and storing. Depending on the process applied various qualities are obtained which are then packed then packed as either secondary or primary.
The processed coffee is distributed to the consumers through various depots in accordance to the marketing strategy and capacity of the firm.
Depending of taste of consumers, nationality, brand and type of process, coffee is consumed on different levels by different individuals.
Reuse, recycling and land filling is used as methods of waste management strategist.
Supply refers to the quantity of goods that producers willingly produce at a given price while constantly holding other factors.
Determinants of coffee supply are;
Input cost: The input cost are inversely proportional to coffee supply. For instance on a high price of raw materials the supply reduces.
Production cost: The cost of production is directly proportional to supply. Incorporation of technology in production reduces the production cost consequently increasing the supply.
Price of substitute: price of an alternative product is directly proportional to the supply. If price of the substitute is low the supply of the coffee will be low.
Expected future price: if the future price is expected to shoot the supply will go down due to hoarding for the future price.