It is the largest food import in the United States. Although the coffee business is increasing in developed countries, the current very low prices are creating serious difficulties for countries where coffee is abundant in economic activity. The dramatic drop in prices over the last five years represents a serious crisis in the coffee sector. This situation is caused by a current imbalance between supply and demand. Coffee production increased by 3.6% while demand increased by only 1.6 (Sustainable Coffee Environment). Fair trade is a set of guidelines followed by producers. This was the best way to promote the development of the world's largest commodity. Coffee is an inelastic good, meaning if coffee prices increase the quantity demanded will not decrease much. Farmers will produce more coffee than consumers want. Child labor is an issue raised by the organization of fair trade in coffee production (The Problem with Fair Trade). Research is being done to see whether the fair trade organization is actually helping poverty as it should and whether it is harming non-commercial farmers. As a social custom, coffee is brought by adults since children cannot drink it. Coffee consumption is widespread throughout the United States. It is the hub of social interaction. Despite its popularity, coffee consumption has become a problem. Some groups have described the United States as a nation of caffeine addicts (Sustainable Coffee Environment). Most people do not consider coffee a social problem, but rather a problem based on caffeine consumption
tags