|
|||||||||
| |
|||||||||
I refer to Dr Brigitte Nyambo's contribution, of 29/4. A contributory factor in why coffee producers are so badly off is the observable phenomenon that when coffee prices rise on the world market (frost in Brazil perhaps) the prices on supermarket shelves in developed countries also rise. When prices on world markets fall (no frost in Brazil couped to increased production due to high prices previously) supermarket shelf prices stay the same or just increase more slowly. If the forces of supply and demand worked freely, such that supermarket prices moved in line with world market prices then demand would increase when world prices fall balancing the market? Can the existing situation be changed? Unlikely I suspect. Producers are price takers, having little influence on world prices themselves. Thus their most likely avenue to progress is reducing the costs of production by adopting improved production techniques? I have referred on an earlier contribution to mobilising the forces of nature to this end, which my previous experience was on with coffee. Can similar approaches be applied elsewhere? Are they already? Thank you James Biscoe 3/5/04 1000hrs
Please visit dfid-agriculture-consultation.nri.org.