DR. MARIO ARTURO RUIZ ESTRADA
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REVISTA ACADÉMICA ECO (23) : 73-92, JULIO-DICIEMBRE DE 2020
7. Conclusion
A new field of economic research is proposed, Coffeeconomics; a new economic
analytical method that can be used to evaluate the performance, development
and progress of the coffee market structure. At the same time, its corresponding
analytical tool is presented, called National Coffee Production Function (NCP-
Function), based on the use of a set of four sub-functions: (i) Sub-Function 0: Coffee
producers, (ii) Sub-Function 1: Coffee brokers, (iii) Sub-Function 2: Coffee sellers,
and (iv) Sub-Function 3: Coffee consumers. The underlying intuition is that coffee
market structure depends on the good performance of these four sub-functions.
The NCP-Function could contribute to a better and more in-depth understanding
of coffee market structure performance as a whole.
A more useful measurement of the NCP-Function is conducive to the generation of
appropriate policies for dealing both with negative factors such as low productivity,
climate change, price discrimination, and with the constant speculation between
coffee producers and coffee brokers. With more suitable and realistic planning,
with better measures that seek to lessen the impact of adverse factors on the
coffee market structure, it is possible to avoid collapse before it occurs. On the one
hand, estimating the negative factors that can affect the coffee market structure
may lead to small coffee producers and cooperatives to allocate more efficiently
financial and human resources for the generation of a sustainable coffee market
structure. Furthermore, and at a broader level, the results confirm that a stronger
NCP-Function could have a significant impact on the coffee market structure, even
in small coffee producing countries. The final conclusion is that the NCP-Function
offers an alternative graphic and analytical approach to risk and vulnerability in the
coffee market structure.