Inflation - increase in price which is decrease in demand and leads to a slump in Vietnamese coffee production

Import and export regulations - if other country’s apply import tariffs and quotas to encourage local business, the export of coffee will be restricted which affect the coffee industry in a specific country like Vietnam

Exchange rates - if the currency value of one country increases, the profit (Vietnam) earned from exporting coffee will be decreased (pay less for the same amount of coffee). Their products’ value will also be enhanced, therefore the quantity of products that Vietnam can import from them will also be decreased (if the Vietnam’s currency value remain the same)

The volatility of the world price of coffee is influenced by supply and demand, but it's not solely determined by these factors. For example, changes in labor costs, transportation, and inputs like fertilizers can affect supply and influence prices.

q2.

Yes, coffee drinkers should be concerned about the human cost of low coffee prices. Low prices can have several negative impacts on coffee farmers and their communities. For example, Economic pressures can increase the likelihood of child labor in coffee-producing regions.

q3.

Improving the well-being of coffee farmers involves actions by several stakeholders.

For example, Fair Trade Organizations:

Ensure farmers receive a fair price for their coffee, covering production costs and providing a decent living. Encourage sustainable and ethical farming practices.

• partially correct, there are some factors that could affect the world price of coffee such as currecncy exchange rate, weather condition

Question 2 - Should coffee drinkers be concerned about the human cost of low coffee prices ?

• Definitely yes

  1. Poverty among farmers since if the price of coffee is low, they only almost enough to cover the cost of productions price, therefore the salary of the farmers and wokers be low, leading to poverty

  2. Child labor since they only has low amount of wage per person, they may abuse child labour or another word: exploitation

Question 3 - What can be done to improve the well being of coffee farmers and by whom ?

Goverment laws, incentives, subsidies or finanacial support would helps.

Firms should give the farmers some long-term contract in order to give the farmer job security => improve living standars and quality of life

• Government regulations

• Global economic growth/decline

• Global crisis: wars, diseases, disasters, global warming, …

Ethical answer: yes, because low coffee prices could be due to low paying labours, which could be child exploitation

Economic growth: increasing the diposable income and consumer demand in coffee will develop the vietnamese coffe industry

• climate condition

• trade policies

• The Quality of coffee

1. Fair Pricing and Cooperatives

2. Access to Education and Training

3. Financial Support and Microloans

4. Sustainable Farming Practices

5. Health and Social Services

6. Climate Resilience Programs

Who: Governments, environmental

7. Direct Trade Relationships

8. Awareness and Advocacy

9. Technological Innovations

Financial support: Governments and financial institutions can offer microloans and grants to help farmers invest in their farms.

• The goverment, consumer and manufacturer .

• Improve access to market and technology

• Fair trade practice

• Increase consumers awareness

• Market

• Trade policies

• Coffee quality

• Customer preferences

• Trends