Problem

Domination of transnational corporations in the coffee industry

Nature:

Growing concentration in the ownership of the processing and distribution industry is a result of major coffee firms' strategy to merge with and/or acquire their rivals in order to increase their market shares. This strategy aims primarily to either facilitate entry to a national market or to reduce the number of rivals in an established national market. Besides, they use product differentiation, price discrimination and technology control. These strategies of leading transnational corporations in the coffee industry are constraints on the independent entry of other coffee producers (particularly the small ones) into major consumer country markets and on the increase of their share of coffee value added.
Broader Problems:
Restriction of free market competition by transnational corporations
Aggravates:
Exploitative agribusiness
Subject(s):
Commerce → Multinationals
Industry → Industry
Plant Life → Plants yielding stimulants
Societal Problems → Imbalances
Related UN Sustainable Development Goals:
GOAL 8: Decent Work and Economic GrowthGOAL 10: Reduced InequalityGOAL 12: Responsible Consumption and ProductionGOAL 17: Partnerships to achieve the Goal
Problem Type:
E: Emanations of other problems
Date of last update
04.10.2020 – 22:48 CEST