THE LATIN AMERICAN ORGANIC COFFEE INDUSTRY: U.S. MARKET INROADS

Danilo Rodriguez and James Epperson

No 16638, Faculty Series from University of Georgia, Department of Agricultural and Applied Economics

Abstract: Certified organic coffee is a minuscule but important portion of coffee production and trade and is the fastest growing sector in sales revenue. Organic coffee has its roots in sustainable crop production and economic development policy. Latin America has become the center of the organic coffee movement, representing a change from the old market structure of the coffee trade. The U.S. organic coffee market has experienced extraordinary growth in the past five years because of an increase in consumer social and ecological awareness. Latin America supplies most of the organic coffee entering the United States, where Mexico, Colombia, and Guatemala are the main exporters. Colombian and Guatemalan organic coffee, according to the survey, receive the highest price premiums because of the perception of superior quality. Surveyed importers and roasters in the United States believe that the organic coffee market will continue to grow at least for the next 10 years. Oversupply, economies of size, and reduced price premiums are seen as the biggest problems to be faced by organic coffee producers in the coming years.

Keywords: Agribusiness; Crop Production/Industries; Industrial Organization (search for similar items in EconPapers)
Pages: 25
Date: 2001
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ugeofs:16638

DOI: 10.22004/ag.econ.16638

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