Coffee is a highly volatile commodity which fluctuates widely and capriciously. Given the nature of the business where one has to stock coffee to sell at a future date or sell coffee in advance based on expected arrival, all companies are exposed to high levels of price risk. Therefore the management of these fluctuating prices herein called as price risk management is of paramount importance for survival in the coffee industry.
This report studies how coffee price risk is currently managed by SMEs. By interviewing 21 companies, it examines why they are managed that way and with what resources they are managed. Later it also identifies the most effective method of price risk management and studies the difficulties for SMEs in using it. Further it makes recommendations for owner managers and policy-makers in solving these difficulties.
Benefits for Readers:
Want to know how to generate more income by managing fluctuating prices effectively? Want to know how other companies are managing fluctuating coffee prices? Want to know how to solve the problems you have in managing fluctuating coffee prices?
All this can be known by reading this report. Precisely through the report:
- You will know how price risk is managed in the coffee industry. - You will know why companies manage price risk in the way they currently do. - You will know what capabilities are required for a company to manage price risk in a particular way. - You will know what are the general difficulties faced by SME owner-managers in managing coffee price risk. - You can get to know through the recommendations made, how these problems can be solved in your organizations. Most of these problems exist in all companies and therefore the recommendations are of paramount importance.
21 Companies participated in this research study
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