After oil, Coffee is the most traded commodity and the largest source of the export earning in the

developing world. But still coffee farmers are hurting. Nonetheless, coffee producers are suffering. They
are paid record low prices as a result of both a worldwide market oversupply and poor consumption
growth. According to some analysts, coffee, like any other commodity, is simply subject to the ups and
downs of a competitive market. This notion is called cold comfort to countries such as Nicaragua and
Burundi. Cold comfort meaning (no solace since their condition is so tough or unpleasant)

ANSWER:

In this case study, an important issue is that coffee making farmers are experiencing difficulties and are
very poor in this business; farmers are actual coffee production makers who grow coffee in farm but do
not get a sufficient price for it in market and they become poor day by day; instead, brokers who
actually buy coffee from farmers sell this coffee at a high price in the international market as an export
medium and make a huge profit; in the international market, there is a lot of competition. However,
firms and brokers use different strategies to make more profit, and many large firms, such as
stark bucks, use coffee daily and serve it to customers, charging a high price for a single cup of coffee.
This means that businesses and brokers make a lot of money from coffee, but the actual farmer who
grows it is poor because coffee prices are low in the market. It is the primary concern; 60% of farmers
rely on the coffee business, but owing to low prices, they are impoverished, and many NGOs try to help
them for a large price, but this does not work. Simply said, farmers face several challenges as a result of
coffee production, while large corporations’ profit from farmers' coffee. This case is related to Porter’s
National Competitive Advantage Theory.  According to theory, the coffee market is competitive because
many farmers and firms grow coffee and because of high supply market face competition and price of
coffee will decline and famers get low price but firms and brokers use National Competitive Theory or
Porter's advantage to make more profit and never face loss and make profit.